What are the tax advantages of electric company cars?
Electric commercial vehicles offer significant tax advantages for business owners. You benefit from 0% additional tax rate, full VAT deduction, favourable depreciation options and various subsidies. These benefits make electric driving more financially attractive than traditional fuel vehicles, especially since the introduction of the BPM levy on diesel vehicles in 2025.
What exactly does the 0% addition for electric company cars mean?
The 0% addition means that as an entrepreneur, you do not pay tax on the private use of your electric company car. Normally, you pay additional tax on 22% of the catalogue value of a company car, but for electric vehicles, this rate of 0% applies.
This scheme applies to fully electric company cars up to 50,000 euros list value. For more expensive electric vehicles, you pay an additional taxable benefit on the excess above 50,000 euros. Hybrid vehicles are not covered by this scheme and have an additional tax rate of 22%.
The 0% rate applies if you also use the company car privately. If you use the car exclusively for business purposes, additional taxable benefit does not play a role anyway. The favourable scheme applies until 2025, after which the rate will gradually rise to 16% in 2026.
What VAT benefits do you get when buying an electric company car?
With electric commercial vehicles, you can use the recover full VAT, both when buying and leasing. This applies to 100% of VAT, regardless of whether you also use the car privately. For traditional petrol or diesel company cars, you can reclaim only 50% of VAT.
This benefit also applies to VAT on repairs, maintenance and accessories of your electric company car. For a purchase price of 30,000 euros including VAT, this means a saving of around 5,200 euros in VAT that you can reclaim in full.
The same principle applies to leasing: you can reclaim the full VAT on the lease instalments. This makes leasing electric company cars extra attractive, as you benefit from lower net costs every month due to the VAT refund.
How does electric utility vehicle depreciation work for tax purposes?
Electric commercial vehicles can be fully amortise as operating expenses, regardless of private use. For traditional commercial vehicles, there is a limitation of up to 50% of depreciation when there is private use, but this limitation is removed for electric vehicles.
In addition, you can make use of the investment deduction. Electric commercial vehicles are often subject to an increased rate of 36% instead of the standard 28%. This means that in addition to the normal depreciation, you can deduct an additional 36% of the purchase price in the year of purchase.
The depreciation period is usually five years, but you can also opt for accelerated depreciation. This gives you the flexibility to make the most of the tax benefits, depending on your operating results and tax situation.
What subsidies and incentives are there for electric commercial vehicles?
For electric commercial vehicles, several subsidies and incentives available. The SEEH subsidy (Zero Emission Commercial Vehicles Subsidy Scheme) offers up to EUR 5,000 for new electric commercial vehicles, depending on the type of vehicle and purchase price.
Provinces and municipalities often offer additional incentives. These include free parking, access to environmental centres and low-emission zones, and sometimes local subsidies. These benefits vary by region, but can significantly reduce the total cost of ownership.
From 2025, there will also be a BPM levy on new diesel and petrol company cars, making electric alternatives relatively more advantageous. This measure makes the switch to electric driving even more financially attractive for companies.
How Van den Hurk helps with electric commercial vehicles
We will help you take advantage of the tax benefits of electric commercial vehicles make the most of it. With our years of experience in the commercial vehicle industry, we guide you through all aspects of the switch to electric driving.
Our support includes:
- Personal advice on tax benefits and savings
- Flexible leasing and financing options, tailored to your situation
- Transparent prices with no hidden costs
- Assistance in applying for grants and incentives
- Guidance from selection to delivery
Whether you choose to buy or lease, we make sure you take advantage of all tax benefits and find the right electric company car to suit your business. Contact us for a personal consultation on the options for your business.
