No electric cars without charging stations. That is why the federal government gives a tax break to encourage the growth of charging stations. Both individuals and companies can enjoy a tax reduction and an increased cost deduction. What exactly does this mean for you? In this blog, we give you everything you need to know about the taxation of charging stations.
Charging stations on the company site
Are you self-employed, fleet manager or employer and want to invest in an electric vehicle fleet with your company? Do it! To promote the installation of charging stations, the new Van Peteghem law entitles you to the following tax benefits for charging stations.
Companies (both one-man businesses and partnerships) that invest in a new, publicly accessible and intelligent charging station between 1 April 2023 and 31 August 2024 can count on an increased tax deduction of 150%. You should also know that you will enjoy the same cost deduction for all costs associated with installing a charging station: from 1 April 2023 to 31 August 2024, this will be 150%. These costs will remain 100% tax deductible until income year 2029. From income year 2030, the tax deduction for charging stations will be limited to 75%. For example, if you want to install several charging stations in the car park of your office building, you will have to incur additional costs for this, such as earthworks to lay underground cabling. This cost is therefore as fiscally attractive as the charging station itself.
There are some conditions attached to these tax advantages for companies, just as for individuals, which are summarised later in this blog:
- The charging station must be made publicly available to third parties, at least during the company’s opening and/or closing hours. This will also be monitored, so make sure the location and availability are registered with FPS Finance. Opening up to third parties simultaneously contains a double benefit. On the one hand, companies will get a new business model by taking a margin on the kWh sold. On the other hand, end users will be able to benefit from more publicly accessible charging stations.
- The charging station should be ‘intelligent’, or ‘connected’, i.e. the charging station should be linked to an energy management system that manages charging time and capacity.
Charging stations in a lease contract
A charging station that is part of a lease contract and installed at the driver’s home address is 100% tax deductible for corporate income tax purposes.
Charging stations purchased by an individual
Anyone who purchases and has a charging station installed as an individual between 1 September 2021 and 31 August 2024 can get a tax reduction. This applies to both owners and tenants. The tax reduction applies to the purchase, installation and inspection of new charging stations and amounts to:
- 30% for charging stations purchased in 2023
- 15% for charging stations purchased in 2024
The costs for which the tax reduction is claimed cannot exceed 1,750 euros and the tax reduction can also only be claimed once per charging station (in the tax period in which the costs were incurred). Moreover, the installation must take place at the address where you are domiciled as a taxpayer. This means you are not entitled to the tax reduction if you want to install a charging station at a second residence.
There are also conditions attached to this tax rebate:
- The charging station must only use green electricity, either with a green power contract or by using your own renewable energy (or a mix of both).
- It must be an ‘intelligent or connected’ charging station, linked to an energy management system that manages charging time and power.
- Do-it-yourself installation is out of the question; the installation of a charging station must be carried out by a professional.
- In accordance with the AREI (Algemeen Reglement op de elektrische installaties), every electrical installation must be inspected by a recognised inspection body.