Charging an electric or plug-in hybrid company car at home has become increasingly popular. But how does the reimbursement of electricity costs by the employer work? In this blog, we explain step by step how this is handled fiscally and what conditions apply. This is important for both employers and employees.
Difference between free provision and reimbursement of electricity
For employers, there are two ways to support employees in charging their company car at home:
- Free provision of electricity: The employer pays directly for the charging costs.
- Reimbursement of electricity costs: The employee pays themselves and receives compensation from the employer.
Below we clarify both situations.
Free provision of electricity
The employer pays the charging costs directly to the energy supplier. This can be done in several ways:
- With a charging pass for public charging stations.
- Via a charging point on the company premises.
- By installing a separate electricity meter at the employee home.
In these cases, the electricity is considered part of the benefit in kind that comes with using the company car. So there is no additional tax for the employee.
Reimbursement of electricity costs
When the employee pays the electricity costs themselves and the employer reimburses them, a separate benefit arises. This falls outside the lump-sum benefit in kind for the company car. The distinction in fiscal treatment depends on the type of travel for which the electricity is used:
- Professional travel: Non-taxable, subject to proof.
- Home-work travel: Taxable, but exempt up to a maximum (490 euros per year for assessment year 2025).
- Private travel: Always taxable.
The exception! Home Charger with Communication System
An important exception applies when the employer, in addition to an electric company car, also provides a charging station (home charger) with a built-in communication system. This system automatically reports how much electricity is used for charging the company car.
Powerland offers charging stations with these built-in communication systems, allowing employers to easily comply with the fiscal conditions.
When does this exception apply?
- The charging station measures and reports consumption.
- The employer only reimburses the actual charging costs.
- The charging costs relate to the company car provided.
In this case, the reimbursement of charging costs is treated as if it were a fuel card. The employee receives no additional taxable benefit.
Important: The CREG tariff does not apply in this situation because the costs are directly linked to the consumption measured by the charging station communication system.
How is the reimbursed amount calculated when reimbursement is done by the employee?
When the employee pays the electricity costs themselves and these costs are reimbursed by the employer, the employer can use a fixed amount per kWh, the so-called CREG tariff. This tariff is determined per quarter and differs per region:
For the first quarter of 2025, the tariffs are (check current tariffs on the CREG website):
- Flemish Region: 28.22 eurocent/kWh
- Brussels Capital Region: 32.94 eurocent/kWh
- Walloon Region: 32.56 eurocent/kWh
Employers may also apply the lowest tariff from the three regions for all employees. The administrative tolerance to calculate actual electricity costs based on the CREG tariff comes into effect from January 1, 2025 and runs until December 31, 2025. Thereafter, the tax administration will evaluate whether this arrangement is extended.
Reimbursements at public charging stations
The exception regarding a home charger does not apply to reimbursements of charging costs at public charging stations. In this case, the reimbursement is treated as a taxable benefit according to the regular rules.
Transfer of ownership of the charging station
When an employer installs a charging station at the employee home and transfers it free of charge to the employee after the end of the lease contract, this is considered a taxable benefit in kind. This benefit is calculated based on the residual value of the charging station at the time of transfer.
Conclusion
For employers, it is important to adapt their car policy to these new fiscal rules. By using charging stations with built-in communication systems, such as those from Powerland, employers can ensure correct and fiscally favorable reimbursement of charging costs.
For employees, it is essential to understand which costs are reimbursed and how they are treated fiscally. This prevents surprises during tax declaration and ensures optimal use of the benefits that an electric company car offers.
Contact Powerland
Want to know more about our charging solutions with built-in communication systems? Contact us and discover how we can help you comply with the latest fiscal requirements while optimally supporting your employees in home charging their company car.
Sources: FPS Finance – Fisconet
