What tax benefits are there for electric cars?
Tax benefits for electric cars for private individuals
– No BPM until 2025
Electric cars are exempt from BPM (Taxation of Passenger Cars and Motor Vehicles). This can easily save thousands of euros on the list price. The lower new-for-old value without BPM also translates into a lower insurance premium.
The BPM exemption will come to an end, although electric cars will not become much more expensive as a result. From 1 January 2025, € 360 BPM will be levied on every new electric car. After 2025, that amount will increase every year in line with inflation, the Tax and Customs Administration reports.
Please note: the BPM exemption until 2025 also applies to hydrogen cars, but not to hybrids and plug-in hybrids.
– No road tax until 2025
You do not pay road tax (MRB) for an electric car. This will last until the end of 2024, after which the exemption will be phased out.
From 1 January 2025 you will pay a quarter of the normal MRB rate and from 2026 you will no longer receive a discount at all. Then you pay the full MRB rate for an electric car, based on the weight of the car and the province where the owner of the car is registered.
Please note: the MRB exemption until 2025 also applies to hydrogen cars, but not to hybrids and plug-in hybrids.
– Purchase subsidy
Private individuals can also apply for a subsidy (SEPP) for the purchase of a new or used electric car, provided the car meets certain conditions and whether there is still enough budget available. The amount of the subsidy is determined annually by the cabinet.
Read all about the subsidy scheme (SEPP) for private individuals here .
Tax benefits for electric cars for lease drivers
If you receive a lease car from your employer, you do not buy it yourself. The tax benefits for private individuals therefore do not apply directly to lease drivers. Other tax benefits do apply.
For example, lease drivers pay less addition for an electric car compared to a petrol or diesel car. For an electric car you pay a 16% addition up to and including a catalog value of € 35,000. If the car is more expensive, you pay an additional 22% on the rest of the purchase amount.
A hydrogen car also qualifies for a 16% addition, but then over the full purchase amount without a maximum. There are no addition benefits for hybrids and plug-in hybrids.
Read here everything about addition and the announced changes for the coming years .
Tax benefits for electric cars for entrepreneurs
– BPM and MRB free
Electric cars and hydrogen cars are exempt from BPM and road tax (MRB) until the end of 2024. This advantage does not only apply to private individuals, but of course also to entrepreneurs who purchase an electric car.
– Environmental investment deduction
An electric company car is eligible for an MIA of 36% on the full investment amount minus € 11,000. A charging point also qualifies for the MIA if it is purchased at the same time as the electric commercial vehicle. For a hydrogen commercial vehicle, an MIA of 45% applies over a maximum of € 125,000, with or without a charging point.
Fully electrically powered taxis for which the registration ‘taxi’ is included in the vehicle registration register, qualify for an MIA of 27% on an investment amount of up to € 40,000. If it concerns an electric taxi for wheelchair transport or with nine seats, an MIA of 36% applies on an investment amount of a maximum of € 75,000.
Please note: as of 2022, the MIA for electric passenger cars has been abolished. Only electric passenger cars with integrated solar panels are still eligible for the MIA. An MIA of 36% applies for an investment amount of a maximum of € 100,000 including charging point.
Visit RVO.nl for more information about the MIA and all business assets that qualify for it.
– Tax-free fees
Furthermore, as an employer, you may reimburse all charging costs of an employee with an electric business car tax-free, also abroad. If that employee has a charge point at home, the costs of using and installing the charge point may also be reimbursed tax-free.
– Purchase subsidy
Entrepreneurs can also receive a subsidy (SEBA) for the purchase of an electric commercial vehicle, provided the model meets certain conditions. In the case of purchase or financial lease, entrepreneurs must apply for the subsidy themselves via the RVO . In the case of an operational lease, the lease company must submit the application. The subsidy scheme for entrepreneurs runs until 31 December 2025.
Read all about the subsidy scheme (SEBA) for entrepreneurs and the amount here .
