Are you self-employed or looking to provide charging stations for your business?
Until March 31, 2023, you can enjoy an increased cost deduction of 200%. From April 2023 to August 31, 2024, that cost deduction drops to 150%. By the way, this legislation applies to all of Belgium.
In Flanders, companies can also claim the Ecology Premium+ for fast chargers and the annual call for subsidies from the Clean Power for Transport initiative. For more information about this, please contact one of our colleagues for a free consultation.
Are you a private individual?
In Belgium, you can also claim a tax deduction on the purchase of charging infrastructure as an individual. The deductibility will be systematically phased out for investments made in the following periods:
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1 Jan 2023 - 31 Dec 2023: Tax reduction of 30%
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1 Jan 2024 - 31 Dec 2024: Tax reduction of 15%
This tax reduction is only applied to a maximum purchase bracket of €1,500 per charge point, per taxpayer. Concretely, this means that with a 45% tax reduction on €1,500, you can save at most €675 on your personal income tax. This maximum amount will be increased to €1,750 with a 30% tax reduction from 1 January 2023. This means that from then on, you can save a maximum of €525 on your personal income tax per charge point, per taxpayer.
Again, some conditions apply to this tax reduction. For more info, contact one of our colleagues immediately for a no-obligation consultation.
Subsidies and taxation when buying Plug-in Hybrid or 100% electric vehicle
In the Flemish Region, you are completely V.A.T. free when you buy a 100% electric vehicle.
In the Walloon and Brussels-Capital Regions, you only pay the minimum V.A.T. (€61.5*) for a fully electric vehicle.
Plug-in Hybrids and other types of Hybrids are subject to a modified scheme that depends on several factors, including the CO2 contribution.
For this, we would like to refer you to the simulation tool of the Flemish Tax Administration. This legislation applies throughout Belgium.
In the Flemish Region, you are completely exempt from road tax when you buy a 100% electric vehicle.
In the Walloon and Brussels Capital Regions, you only pay the minimum road tax (€83.95*) for a 100% electric vehicle.
*fee amounts valid on 31/5/2021
However, Wallonia plans a thorough reform of its traffic taxes in 2023. Exactly what the system will look like is unclear for now.
For (Plug-in) hybrids, the same calculation of the CO2 contribution applies to obtain the road tax. For this, we refer to the calculation of the CO2 contribution for non-Full EVs.
Do you have an electric company car that you also use privately? Then you will pay less than owners of cars with diesel, petrol, LPG or natural gas engines. Due to their lower baseline CO2 emissions in 2022, their bill is actually higher than the previous year, but electric cars get away with this additional cost. Indeed, the lowest CO2 coefficient, being 4%, is taken into account when calculating the BiK for an electric company car.
Some local governments, cities and municipalities offer subsidies to individuals when buying or leasing a 100% electric car. Ask your municipality about the possibilities.
In Ghent, for example, from 2021 there is a premium of up to 4,500 euros for those who buy or lease an electric car and use it as a shared car.
Are you self-employed or run a business? Then at that point, the purchase of an electric car is 100% tax deductible. You also deduct 100% of the electricity you use for electric vehicles from your taxes.
In fact, between 2023 and 2026, the government will phase out tax breaks for fuel and hybrid cars. So from then on, only electric company cars will be tax deductible!
Tax deductibility for (plug-in) hybrids again depends on CO2 emissions. For this, it is best to consult the table from the Belgian government on the MinFin website.