Simplified reimbursement for home charging of electric company cars: temporary scheme from 1 January 2025
Simplified reimbursement for home charging of electric company cars: temporary scheme from 1 January 2025
January 2025 - From 1 January 2025, there will be a new temporary simplified scheme for reimbursement of electricity costs when employees charge their company car at home.
For employees who charge their electric company cars at home, there will be greater clarity on the reimbursement of electricity costs. Indeed, from 1 January 2025, a new temporary scheme will apply that simplifies this reimbursement process and reduces the administrative burden for employers.
Strict rules for reimbursement
Until recently, reimbursement of electricity charged at home was only allowed on the basis of actual costs. This meant that as an employer, you had to calculate the exact electricity cost per employee, which often proved difficult. After all, actual costs depend on factors such as the type of energy contract, solar panels and the time of charging. Calculating this entailed a considerable administrative burden for employers.
Many employers therefore opted for a flat rate. However, this was risky as the difference between flat rate and actual costs could be taxable.
Temporary solution
On the initiative of resigning finance minister Vincent Van Peteghem, a temporary scheme will be introduced from 1 January 2025 that allows flat-rate refunds without tax disadvantages. As an employer, you may temporarily apply a fixed amount per kWh, based on average electricity prices published monthly by the federal energy regulator CREG.
The flat rate is adjusted quarterly and varies by region:
· Flanders: 28.22 cents/kWh
· Brussels: 32.94 cents/kWh
· Wallonia: 32.56 cents/kWh
You can choose to pay a lower amount, but the rate mentioned is the maximum.
Flexibility for refunds before 2025
Repayments of electricity costs before the introduction of this scheme will be flexibly assessed by the tax administration, provided they were made in good faith according to CREG guidelines.
Tax considerations
The new scheme is in line with the existing principle that a company car with a charging station is treated similarly to a car with a fuel card. The reimbursement of electricity costs is not an additional taxable benefit, as long as it meets certain conditions.
For example, the charging station must be able to communicate how much electricity has been consumed and the refund must relate only to the electric company car. Also, your company's car policy must explicitly state this.
Technological developments
An extension of this temporary measure is not out of the question. Meanwhile, technological innovations, such as accurate metering and communication systems for home charging, continue to develop. This may lead to a permanent and administratively simpler solution in the future.