Investing in an electric car? This is our way of thinking. But how are they charged? Increasingly, the government wants to focus on the greening of the Belgian vehicle fleet and is encouraging companies to be more ecological. Of course, every entrepreneur wants to be involved in this, but what does it mean in concrete terms? Let’s get to the bottom of what’s going on today.
Advantage for companies: delivery with installation
In concrete terms, this means the following: delivery and installation of the charging station in the house or on the exterior facade and in or on the facade of the garage or carport die zich in de onmiddellijke omgeving van de eigenlijke woning bevindt.
If this definition is met, this means construction works regarded as a supply of goods and is therefore VAT neutral for most companies.
However, if the installation does not take place in the actual house, 21% VAT will be charged on the installation.
Advantage for the company: deduction of costs
- Accessible to the public
Until 31 December 2022, each company will be able to benefit from an increased deduction of costs of up to 200%. This deduction may only be applied once the charging stations are operational and accessible to the public. Afterwards, the tax benefit drops to 150% until 31 August 2024.
- Not accessible to the public: no increased deduction of costs possible
What does the government mean by “accessible to the public”? This means that the charging station must be accessible to any third party, at least during opening hours. An additional condition is that the charging stations must be public. Everyone must be able to check the location and availability. Finally, they must be intelligent charging stations. Nor must registration with the Federal Public Service of Finance be overlooked.
Who reimburses “refuelling” at these public charging stations?
The increased deduction of costs has been taken into account, but of course the intention cannot be that every entrepreneur who provides such a charging station should pay for the fuel costs. It is also an intelligent charging station if the charging station can record the charging capacity and charging time at all times and for each charging cycle. These electricity costs are regarded as fuel costs with respect to the company.
Advantage for individuals
From 1 September, each individual may declare a maximum of €1,500 per charging station in their personal income tax return. This amount is subject to tax relief of 45%. In concrete terms, this means a financial advantage of €675. This tax relief is applicable until 2022. Tax relief of 30% is still applicable in 2023 and falls to 15% in 2024. Of course, there is also a condition attached to this: the charging station must have smart control and be powered by green electricity.
Advantages and disadvantages for both individuals and companies
With currently rising fuel prices, it may therefore be interesting to look at these options. In addition, every driver who drives a 100% electric car also benefits from an exemption from annual road tax and vehicle registration tax. Of course, we must also take some negative aspects into account. Just think of the following: charging takes more time than refuelling and charging requires additional capacity from your electric network.
Our Bofidi experts will be happy to help you
Do you have any specific questions about charging stations and the tax benefits? Then please don’t hesitate to contact us. Bofidi’s team of experts will be happy to help you.