In a world that increasingly values sustainability and environmentally friendly choices, electric cars are taking center stage. With their promise of reduced emissions and lower operating costs, electric cars have become a popular choice for environmentally conscious consumers. What many may not realize, however, is that purchasing a used electric car can not only benefit the environment, but also provide significant tax benefits.
The tax advantages of electric cars
Buying a used electric car is not only a smart choice for your wallet, but also a step forward for our planet. Both professionals and individuals can enjoy a lot of tax benefits. If you choose an electric car as a professional, you can enjoy a tax benefit that is as much as 100% deductible. The individuals among us can enjoy an attractive premium (max. €5,000) from the Flemish government in 2024. But the benefits don’t stop with the environment or saving money at the gas pump. Electric cars also bring nice financial savings, thanks to all kinds of discounts and tax breaks. Electric driving has never been so advantageous.
Business deductibility: purchase and electricity costs
For entrepreneurs and businesses, the tax benefits are even more extensive. The deductibility of electricity costs here stands at 75%. For some business activities, you can even reclaim up to 50% of VAT on car expenses. In addition, VAT on charges for a charging station can be deducted up to 100%. These kinds of benefits make a big difference, especially if you own your own business. This is not only good news for your finances, but also for the planet.
The tax on entry and traffic tax
The benefits also apply to registration tax (BIV) and road tax. Electric vehicles in the Flemish Region receive full exemption from BIV. In Wallonia and Brussels, fully electric cars are only subject to the minimum BIV and road tax. This makes the purchase of an electric car extra attractive!
Benefits in kind (VAA) for electric commercial vehicles
Employees who choose an electric company car also enjoy many benefits. Thanks to the emission-free nature of electric cars, the calculation of the benefit in kind (VAA) is more advantageous. Consequently, employees owe less tax on personal use of a company car.
Local subsidies for electric cars
Several local governments also provide subsidies when buying or renting electric cars. These subsidies vary from region to region. So be sure to check which local subsidy or premium you can enjoy. For example, since 2021 in Ghent, you can enjoy a premium on the purchase or leasing of new electric cars.
Are charging stations also tax deductible?
Yes, the tax benefits associated with charging stations apply to both individuals and professionals. Individuals can enjoy a tax break when installing charging stations. Businesses can enjoy a tax deduction of up to 150% based on installation criteria and availability.
The Flemish premium for electric cars in 2024
When buying an electric car, you can also enjoy an additional subsidy. This Flemish premium applies to both new and used electric cars.*
*With certain conditions linked to the purchase price and the type of vehicle.
