Electric car and tax: what you need to consider

Electromobility receives tax incentives. The exact amount of the subsidy depends on when the company car with an electric motor was purchased.

In addition to the classic gasoline or diesel, more and more companies are turning to environmentally friendly electric cars for their company car fleet. A trend that Father State likes to see and wants to push further. Therefore, since 2019, there are also new subsidies for the taxation of private journeys for company cars with electric motors, which have been adjusted several times.

Since 2019: 1 percent of half the list price

In principle, private journeys with the company car must be taxed. The most convenient method is the 1% rule, in which a flat rate of one percent of the buttolist price of the company car is added to the monthly salary.

However, since the so-called electric cars still cost more than gasoline or diesel vehicles, employees with electric company cars had to dig deeper into their pockets. This changed on 1. January 2019: The imputed income has now been set at one percent of half the list price. And since 1. January 2020, it has become even more favorable, because since then the new 0.25% regulation for “pure” electric vehicles applies Electric vehicles. By the way, both tax advantages are also taken into account in the logbook method.

By the way:

The new regulation applies to electric vehicles purchased from 01. January 2019 to 31. December 2030 can be purchased or leased. The relevant date is not the date of the purchase contract, but the date of delivery of the car.

Since 2020: The new 0.25 percent regulation for “pure” electric vehicles Electric cars

Since January 2020, electric cars without carbon dioxide emissions with a gross list price up to 40.The tax rate for electric vehicles is increased again for vehicles costing more than EUR 000, more than half of which are used for business purposes. For these company cars, only 0.25 percent of the gross list price must be taxed monthly as a non-cash benefit. As of July 2020, the purchase price limit has been raised to 60.000 Euro increased.

For other electric vehicles or “pure Electric cars with a higher gross list price remain subject to the 0.5% rule from 2019.

Special regulation for hybrid electric vehicles

If the rechargeable hybrid electric vehicle fulfills one of the following requirements, the following tax rules have applied since January 1, 2009. January 2019 also the 0.5% regulation:

  1. If purchased before 1.1.2022, if the vehicle emits a maximum of 50g CO2/km or has a purely electric range of at least 40 km according to WLTP.
  2. In the case of an acquisition after 31.12.2021 and before 1.1.2025 if the vehicle emits a maximum of 50g Co2/km or has a purely electric range of at least 60 km according to WLTP.
  3. If purchased after 31.12.2024, if the vehicle emits a maximum of 50g Co2/km or has a purely electric range of at least 80 km according to WLTP.

If the hybrid does not meet any of the requirements, the disadvantage compensation that was valid until the end of 2018 continues to apply. More on this in a moment.

Charging station at the employer’s premises: use tax-free

Since 2017, free or discounted charging of an electric car or hybrid at work has been tax-free. This applies not only to company cars with electric motors, but also to private electric vehicles that are hooked up to the charging current.

There are tax-free flat rates for private charging

Reimbursed by the employer or. If the employer pays the employee’s privately borne electricity costs, this is a so-called tax-free reimbursement of expenses. The employer resp. the employer may also reimburse the electricity costs for the private charging current at a flat rate. Individual proof is therefore not necessary. Those who are also allowed to use the electric company car privately and charge it at home can use the following flat rates for simplification reasons:

  • Is there an additional charging possibility at the employer’s site?. the employer, a monthly lump sum of 30 euros for electric vehicles and 15 euros for hybrid electric vehicles can be claimed.
  • If there is no charging option at the employer’s or. the employer may claim as much as 70 euros per month for electric vehicles and 35 euros per month for hybrid electric vehicles.

These flat rates are officially recognized by the tax authorities and are valid until 31. December 2030.

By the way:

Does the employer reimburse or. the employer does not pay for charging power and the employee bears the costs himself, these costs reduce the imputed income from the company car provision.

Until 2018: reduction of the gross list price by flat-rate amounts for the battery system

For all vehicles registered by 31.12.2018, the so-called disadvantage compensation applies. The disadvantage compensation provides for the gross list price to be reduced – by lump-sum amounts for the battery system.

In concrete terms: anyone who ordered a company car with an electric motor in 2018 could reduce the list price by 250 euros per kilowatt hour, but by a maximum of 7.500 euro.

Year of purchase / year of first registration Minimum amount in euros / kWh of battery capacity Maximum amount in euros
2019 200 7.000
2020 150 6.500
2021 100 6.000
2022 50 5.500

This form of subsidy should be phased out for the time being in 2022. Therefore, the reduction amount also decreased year by year.

Until 2018: Special regulation for hybrid cars here as well

Until the end of 2018, drivers who opted for a hybrid car without a power outlet had bad cards to play. Fiscally, they came away empty-handed, because there were no explicit tax breaks for these hybrid cars. No rule without exception: in addition to battery-powered electric vehicles, you could also enjoy the tax breaks if you had a car with a plug-in hybrid.

By the way:

The topic of electric car and tax is too complex for you? Come to us, the VLH. We do your tax return and secure the tax advantages you are entitled to. You can find an advice center near you here: Advisor search.

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