Electric driving, subsidies and tax breaks.

Electric driving is the future, as you can see from the number of electric cars driving around and being sold. Moreover, all commercial vehicles must be electric starting in 2026. Apart from the positive impact on the environment and reduced fuel costs, certain tax benefits, rebates and exemptions make the purchase of an electric car very attractive.

In 2016, Flanders created a zero-emission premium to encourage the purchase of 100% electric cars. Since January 2020, this premium has been abolished, but even without it, buying or leasing an electric car remains a smart investment.

1. Input tax (BIV).

  • In the Flemish Region you are completely exempt from V.A.T. when purchasing a 100% electric car.
  • In the Walloon and Brussels-Capital Regions, you pay only the minimum in GST (€61.5*) for a fully electric vehicle. 

2. Traffic load

  • In the Flemish Region you are completely exempt from road tax when purchasing a 100% electric car.
  • In the Walloon and Brussels Capital Regions, you pay only the minimum road tax (€83.95*) for an all-electric vehicle. 

3. Benefit-All-Around (VAA).

  • Do you have an electric company car that you also use privately? Then your SG&A costs will decrease. This is because the calculation of the SG&A for an electric company car takes into account the lowest CO2 coefficient, which is 4%.

4. Local premiums

Some local governments, cities and towns offer subsidies to individuals when they purchase or lease a buy or lease a 100% electric vehicle. Check with your municipality about the possibilities.

In Ghent, for example, since 2021 there is a premium of up to €4,500 for those who buy or lease a new electric car and use it as a shared car. 

5. Tax deductibility 

Are you self-employed or a corporation? Then 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. 

By the way, between 2023 and 2026, the government is phasing out tax breaks for fuel and hybrid cars. From then on only electric company cars will be tax deductible!

6. Tax deduction for charging stations 

Moreover, as a company in Flanders, you can deduct 100% of the cost of purchasing and installing a charging station for tax purposes. As of September 2021 you will also receive a tax reduction as a private person when installing a charging station, which will decrease over the years from 45% to 15% of the investment amount in 2024. The maximum support you enjoy per charging station is €1,500. One of the conditions is a green energy contract. 

CAUTION!

 For individuals, the charging station is 100% deductible if:

  • purchase and installation occurs as of Sept. 1, 2021,
  • your charging station has smart control and is supplied with green electricity 
  • you are a tenant or owner. 

You get 45% tax reduction with a cap of up to €1,500 per charge point and per taxpayer. 

For self-employed and liberal professionals, the charging station is 200% deductible if:

  • purchase and installation occurs between September 1, 2021 and December 31, 2022
  • the charging station is publicly accessible and usable by third parties. 

7.Premium for a home battery 

As a private individual, the Flemish Government gives you a premium when you install some home batteries, with a maximum of 40% of the investment cost, up to €2,550. The premium will decrease annually until the end of 2025.