Are there any grants available for leasing electric company cars?
Electric commercial vehicles are becoming increasingly popular, particularly as the cost of fossil fuels continues to rise. However, the purchase price of an electric van or minibus is often higher than that of a comparable petrol or diesel model. Fortunately, there are various grants and tax schemes that make the switch a lot more attractive, even if you opt for an electric commercial vehicle lease.
In this article, we answer the most frequently asked questions about grants for electric company cars. Whether you’re a self-employed person, run a small SME or manage a fleet of vehicles, here you’ll find practical information on what’s available and how to make use of it.
What subsidies are available for electric company car leasing?
There are two main schemes available in the Netherlands for leasing electric commercial vehicles: the SEPP subsidy (Subsidy Scheme for Zero-Emission Passenger Cars and Vans) and the MIA/Vamil scheme (Environmental Investment Allowance and Discretionary Depreciation of Environmental Investments). Both schemes are available to business drivers, but they operate differently and have their own conditions.
In addition to these two main schemes, supplementary local grants are available in some local authorities and counties. North Brabant, for example, has in the past offered incentive schemes for business owners switching to zero-emission vehicles. It is therefore always a good idea to check with your local council or provincial authority to find out what additional support is available in your region.
If you’re thinking of buying or leasing a small van, it’s worth knowing that both schemes may also apply to lighter vehicles. The exact conditions depend on the weight and category of the vehicle. Always check the current conditions via the Netherlands Enterprise Agency (RVO), as subsidy budgets may run out or be adjusted annually.
How does the SEPP grant work for business drivers?
The SEPP grant is a direct purchase grant for electric delivery vans for business drivers. You apply for the grant via the RVO and receive a fixed amount per vehicle, provided the vehicle meets the specified requirements. The grant applies to both purchase and finance lease arrangements, in which case, as a business driver, you are the economic owner of the vehicle.
What are the conditions of the SEPP?
To be eligible for the SEPP grant, a number of specific conditions apply:
- The vehicle must be fully electric (not a plug-in hybrid).
- This is a delivery van with a maximum mass of up to 4,250 kg.
- You must submit the application before or shortly after the vehicle is registered in your name.
- The vehicle must be new or less than a certain age (check the current regulations with the RVO).
- You are registered as a business owner with the Chamber of Commerce.
Does the SEPP also apply to operating leases?
In the case of an operational lease, the leasing company is the legal owner of the vehicle. In that case, the leasing company can apply for the SEPP subsidy and factor this benefit into the lease term. It is important that you discuss this explicitly when signing a lease agreement, so that you can be sure the benefit actually goes to you and does not simply disappear into the lease company’s profit margin.
What is MIA/Vamil, and does this also apply to leasing?
MIA stands for Environmental Investment Allowance and Vamil for Discretionary Depreciation of Environmental Investments. Together, they form a tax scheme that allows business owners to claim an additional deduction from their profits for part of the investment in an environmentally friendly asset. For electric company cars, this can make a significant difference to the tax bill.
MIA entitles you to an additional tax deduction on top of the standard depreciation. Depending on the vehicle category and its environmental performance, you can deduct an additional percentage of the investment costs from your taxable profit. Vamil also offers the option to spread the depreciation freely over time, which provides a liquidity advantage in the year in which you make the investment.
Do the MIA/Vamil schemes also apply to lease agreements?
In principle, the MIA/Vamil scheme is intended for the owner of the business asset. In the case of a finance lease, where you are the economic owner, you can in many cases still make use of the scheme. The situation is different with an operational lease: in that case, the leasing company is the owner and you cannot apply MIA/Vamil yourself. Always discuss this with your accountant or tax adviser to determine which type of lease is most favourable for your situation from a tax perspective.
How much of a grant can you get for an electric company car?
The exact amount of the subsidy varies depending on the scheme and the vehicle. Under the SEPP scheme, you receive a fixed amount per electric van, whilst under the MIA/Vamil scheme you benefit from a tax relief that depends on your profit and the amount invested. In practice, combining both schemes can result in a substantial financial benefit per vehicle.
In practical terms, it works as follows: the SEPP grant is a direct payment that you receive once your application has been approved. The MIA tax relief is applied indirectly via your tax return. If you purchase an electric commercial van with double cabin Although the purchase price may be higher than that of a standard small van, the tax relief available is correspondingly greater.
Please bear in mind that grant budgets are limited and are allocated on a first-come, first-served basis. In the past, SEPP budgets have sometimes been exhausted early in the year. You should therefore apply as early as possible and ensure that your documentation is in order. The RVO website provides up-to-date information on the remaining budgets for each scheme.
Are self-employed people and SMEs also eligible for a grant?
Yes, both self-employed individuals and SME business owners are eligible for the available grants, provided they are registered with the Chamber of Commerce and use the vehicle for business purposes. The SEPP grant makes no distinction based on company size: even a sole trader with just one van can apply.
For self-employed people, it is important to carefully consider the tax benefits of MIA/Vamil. If, as a self-employed person, you have little taxable profit, the tax deduction is less valuable. In that case, the direct SEPP grant may, relatively speaking, have a greater impact on your total costs. SMEs with multiple vehicles in their fleet can apply the schemes on a per-vehicle basis, which can quickly add up to a significant total benefit.
What do you need to sort out as a self-employed person or SME owner?
To claim the grants as a self-employed person or SME, follow these steps:
- Check whether the vehicle you are interested in is on the RVO list of eligible vehicles.
- Submit the SEPP application via the RVO portal, preferably before or immediately after purchase or registration in your name.
- Notify the RVO of the investment for MIA/Vamil within three months of entering into the commitment.
- Include the MIA deduction in your tax return via your accountant.
- Keep all invoices and contracts as evidence.
When is leasing an electric company car a financially attractive option?
Leasing an electric commercial vehicle makes financial sense if you can offset the longer lease term with lower energy costs, reduced maintenance and tax benefits. For many business owners who drive within a limited range on a daily basis and have access to charging facilities, the switch is already cost-effective in the short term.
The financial considerations depend on a number of factors:
- Handling: If you do a lot of short city journeys, you’ll get the most out of the low energy costs of electric driving.
- Charging options: Charging at home or at work is cheaper than using public charging points; this has a direct impact on running costs.
- Grants: If the SEPP grant is factored into the lease term, the monthly payment is reduced straight away.
- Tax situation: The MIA/Vamil scheme provides greater benefits the higher your taxable profit is.
- Contract duration: With a longer lease term, you spread the higher purchase costs over more months, which reduces your monthly payments.
A double-cab commercial van or a specialised vehicle, such as a refrigerated van, represents a greater investment, but the savings on energy and maintenance are correspondingly greater. Always calculate the total cost of ownership (TCO) over the entire lease term and take any available subsidies into account.
How we can help you with electric commercial vehicle leasing
At Van den Hurk Commercial Vehicles, we’re happy to help you make the right choice when it comes to leasing electric commercial vehicles. We have over 60 years’ experience in the sector and know the business market in North Brabant well. Our approach is practical and personalised:
- We’ll discuss your driving profile and business needs to select the right vehicle, whether that’s a small van, a double-cab commercial van or a specialised electric vehicle.
- We will provide you with information on the current grants and tax schemes that apply to your situation.
- We offer flexible leasing options to suit your budget and growth plans.
- We’ll guide you every step of the way, from initial advice right through to delivery, so you don’t miss a single step in the application process.
Would you like to find out what leasing electric company cars could mean for your business? Please get in touch with us for a no-obligation chat. We’d be happy to help you explore your options and ensure you make the most of the available schemes.
