Recently, a Circular was published by the tax authorities describing the treatment of the reimbursement electricity costs for home charging of electric or (plug-in) hybrid company cars.
Background
As a general principle, the reimbursement of electricity costs related to purely private trips constitutes a taxable benefit in kind for the employee, equal to the actual amount paid.
However, under certain conditions, reimbursing employees for the costs of home charging their electric/hybrid company car does not result in an additional taxable benefit. One of these conditions is that the reimbursement must correspond to the employee’s actual expenses.
In practice, this results in a significant administrative burden. Various parameters need to be considered, such as day and night tariffs, fixed, variable, or dynamic energy contracts, contract changes during the year, solar panels, home batteries, and capacity tariffs.
Specific CREG Tariff
To alleviate this heavy administrative burden, it is permissible to calculate the actual electricity costs using a fixed amount per kWh, but only if this fixed amount does not exceed the CREG tariff specified below.
For the first quarter of 2025, the maximum fixed tariff per kWh is:
- Flemish Region: €0.2822/kWh
- Brussels Region: €0.3294/kWh
- Walloon Region: €0.3256/kWh
These rates are revised quarterly and apply per region, based on the residence of the employee.
Employers may also choose to reimburse electricity usage without taking employees’ residences into account. In such cases, the maximum fixed tariff per kWh is the lowest rate applicable in one of the regions for the relevant quarter. This choice applies for the entire calendar year.
Temporary Arrangement
This tolerance, allowing actual electricity costs to be calculated based on a maximum fixed amount per kWh, is valid from January 1, 2025, to December 31, 2025, with a potential extension after evaluation.
Scope of Application
The Circular reiterates other known conditions to ensure that the charged electricity does not constitute a taxable benefit in kind:
- Provision of a Charging Station
The Circular emphasizes that the employer’s provision of a charging station is not an absolute requirement. Employees may also use a charging station they own. However, their charging station must have a specific communication system.
- Specific Communication System
The charging station must include a specific communication system that reports the electricity consumption for charging the company car to the employer. The employer must be able to veryify this consumption.
- Car Policy
It is essential to include clear guidelines in the car policy regarding the reimbursement procedure for “charged” electricity.
Do not hesitate to contact Pro-Pay for your questions on this topic or for assistance concerning the car policy.
Read: Fuel Card Impact on Belgian Company Car Benefits: discover tax implications
