ELECTRIC VEHICLES: TAX benefits & purchase INCENTIVES
As per report from October, 2021
The 27 member states of the European Union and the United Kingdom (2021)
Glossary
| BEV | .= Battery electric vehicle | HEV | .= Hybrid electric vehicle | ▬ = None |
| FCEV | .= Fuel cell electric vehicle (hydrogen) | CNG | .= Compressed natural gas | ▬ = None |
| PHEV | .= Plug-in hybrid electric vehicle | LPG | .= Liquefied petroleum gas | ▬ = None |
| EREV | .= Extended-range electric vehicle | E85 | .= Blend of 85% ethanol fuel and 15% petrol or other hydrocarbon | Copyright notice Reproduction of (parts of) this document is not permitted without the prior consent of ACEA. |
| COUNTRY | TAX BENEFITS ACQUISITION | TAX BENEFITS OWNERSHIP | TAX BENEFITS COMPANY CARS | PURCHASE INCENTIVES |
| AUSTRIA | VAT deduction and exemption from tax for zero-emission cars (eg BEVs and FCEVs). |
Exemption for zero-emission cars. | Exemption for zero-emission cars. | Bonus (until the end of 2021) for the purchase of new cars and vans with fully-electric range of 50km and gross list price of ≤ €60,000: § €3,000 for BEVs and FCEVs § €1,250 for PHEVs and EREVs For more details: www.umweltfoerderung.at |
| BELGIUM | § Brussels and Wallonia: minimum rate for zero-emission vehicles (€61.50). § Flanders: zero-emission vehicles (BEV, FCEV and H2) are exempted. |
§ Brussels and Wallonia: minimum rate for zero-emission vehicles (€76.32 + 10% municipal tax per year). § Flanders: zero-emission vehicles (BEV, FCEV and H2) are exempted. |
Deductibility of 100% under (corporate) taxation of expenses for vehicles emitting no more than 42g CO2/km (NEDC or WLTP). | ▬ |
| BULGARIA | ▬ | Exemption for electric vehicles. | ▬ | ▬ |
| CROATIA | No excise duties for electric vehicles. | Exemption from special environmental tax for electric vehicles. | ▬ | Incentive scheme (once a year, limited funds): § €9,200 for BEVs § €4,600 for PHEVs |
| CYPRUS | Exemption for vehicles emitting less than 120g CO2/km. | Minimum rate for vehicles emitting less than 120g CO2/km. | ▬ | ▬ |
| CZECH REPUBLIC | § Exemption from registration charges for BEVs and FCEVs emitting up to 50g CO2/km (upon request of a special number plate). § Exemption from vignettes for BEVs and FCEVs emitting up to 50g CO2/km. § 50% vignettes price discount for natural gas and biomethane vehicles. |
▬ | Exemption for alternatively-powered vehicles (ie electric, hybrid, CNG, LPG and E85). | § Incentives for companies to buy BEVs and EREVs, for more details: https://www.agentura-api.org/wp-content/uploads/2019/12/resume-nut-elektromobilita-v.vyzva-eng.pdf § Incentives for public transport operators to buy BEVs, FCEVs, CNG or LNG road vehicles: https://irop.mmr.cz/cs/vyzvy/seznam/vyzva-c-93-nizkoemisni-a-bezemisni-vozidla-pro |
| DENMARK | § Exemption for FCEVs until the end of 2021. § From 2021 to 2025, zero-emission cars pay 40% of the full registration tax. § 45% of the full registration tax for low-emission cars. § Further deduction in the registration tax: – DKK 170,000 for zero-emission cars – DKK 50,000 for low-emission cars § Zero-emission cars are exempted from the CO2 emissions-based surcharge to the registration tax. |
Taxes on ownership are based on CO2 emissions. Zero-emission cars pay the minimum tax rate of DKK 330 annually. |
▬ | ▬ |
| ESTONIA | ▬ | ▬ | ▬ | Bonus of €5,000 for the purchase of a full-electric car or van with a price below €50,000. For more details: https://kik.ee/et/toetatav-tegevus/elektriliste-soidukite-soetamine |
| FINLAND | Minimum rate for zero-emission vehicles. | Minimum rate for zero-emission vehicles. | Tax deduction of €170 per month from taxable value (income tax) for BEVs from 1 January 2021 until 31 December 2025. Charging of electric vehicles at the workplace is exempted from income tax from 2021 to 2025. | Purchase incentive of €2,000 granted for households to purchase or lease a new BEVs in class M1 and M1G, provided value does not exceed €50,000. Incentive is valid in 2018-2021. Temporary scrapping bonus of € 2,000 if purchase of a new BEV or PHEV while scrapping an old passenger car, valid from 1 December 2020 to 31 December 2021. |
| FRANCE | Regions provide an exemption (either total or 50%) for alternatively-powered vehicles (ie electric, hybrid, CNG, LPG and E85). |
▬ | Exemption from CO2-based tax component (‘TVS’) for vehicles emitting less than 20g CO2/km. | Bonus to buy cars or vans with ≤ 20g CO2/km: § €7,000 for households, vehicle price ≤ €45,000. § €5,000 for legal persons, vehicle price ≤ €45,000. § €3,000 for households and legal persons: – Vehicle price between €45,000 and €60,000. – FCEV vans and cars or vans with price > €60,000. Bonus to buy cars or vans with > 21 and ≤ 50g CO2/km: €2,000 for households, vehicle price ≤ €50,000. Bonus to buy BEV or FCEV heavy-duty vehicles: § €50,000 for N2/N3 vehicles § €30,000 for M2/M3 vehicles Scrappage scheme for purchase of second-hand or new vehicles with ≤ 50g CO2/km, price ≤ €60,000: § Cars: – €5,000 for households, depending on income. – €2,500 for legal persons. § Vans: €5,000 (for households or legal persons). |
| GERMANY | From 1 July 2020 until 31 December 2020, temporary VAT reduction from 19% to 16%. | 10-year exemption for BEVs and FCEVs registered until the end of 2020. | § Reduction of the taxable amount for BEVs and PHEVs (from 1% to 0.5% of the gross catalogue price per month). § Additional reduction of the taxable amount for BEVs with a gross list price of up to €60,000 (from 1% to 0.25% of the gross catalogue price per month). |
Until 31 December 2021, an ‘innovation bonus’ temporarily increases the environmental bonus for new and used BEVs, PHEVs and FCEVs. Applies to all eligible vehicles registered from 4 June 2020. § Bonus for cars with net list price ≤€40,000: – €9,000 for BEVs and FCEVs. – €6,750 for PHEVs. § Bonus for cars with net list price >€40,000: – €7,500 for BEVs and FCEVs. – €5,625 for PHEVs. |
| GREECE | § Registration Tax (RT) exemption for BEV cars. § 75% reduction in RT for PHEVs up to 50g/km. § 50% reduction in RT for the rest of PHEVs and all HEVs. § RT exemption for trucks. |
Exemption for cars emitting less than 122g CO2/km (WLTP). | § Exemption of the benefit in kind tax for BEVs and PHEVs emitting up to 50g CO2/km (NEDC or WLTP) with net retail price (NRP) of up to €40,000. § Deductible of €40,000 in the NRP for BEVs and PHEVs up to 50g CO2/km with higher NRP value. |
§ 15% to 20% cashback on the NRP of BEV cars, with a maximum cashback of €5,500 or €6,000. Max NRP to receive incentive: €50,000. Extra €1,000 if an old car is scrapped (10 years or older). § 25% cashback for BEV taxis of up to €8,000 (15% for PHEVs with ≤50g CO2/km), plus extra €2,500 for the old taxi, which must be scrapped. § 15% cashback for vans (up to €5,500 for BEVs; €4,000 for PHEVs), plus €1,000 for scrapping. |
| HUNGARY | Exemption for BEV and PHEV cars. | Exemption for BEV and PHEV cars | Exemption for BEV and PHEV cars. | From 15 June 2020, purchase incentives for electric cars: § €7,350 for gross price of up to €32,000 § €1,500 if price between €32,000€ and €44,000 |
| IRELAND | ▬ | § Minimum rate (€120 per year) for BEVs. § Reduced rate (€140 per year) for PHEVs with ≤ 50g CO2/km. |
‘Benefit-in-kind concession’ for electric cars and vans with a market value of less than €50,000 (until the end of 2022). | Purchase incentives for individuals in 2021: § Up to €5,000 for BEVs. § Up to €5,000 for PHEVs with ≤ 50g CO2/km that can travel in full-electric mode for a minimum of 50km. § Up to €3,800 for BEV vans. |
| ITALY | ▬ | § Five-year exemption for electric vehicles from the date of first registration. § After this period, 75% reduction of the tax rate applied to equivalent petrol vehicles. |
▬ | Bonus-malus scheme: § Bonus: a one-off amount (max €6,000 for cars emitting ≤70g CO2/km and a price less than €50,000 (excluding VAT). § Malus: up to €2,500 for cars emitting more than 250g CO2/km. In alternative to the Bonus-malus scheme, households with an Equivalent Economic Situation Indicator (ISEE) of less than €30,000 who purchase in Italy, by 31 December 2021, or buy in finance leases, new electric cars with a power of less than 150kW, with a list price of less than €30,000 (excluding VAT), are recognized a contribution equal to 40% of the expenses incurred. |
| LATVIA | Exemption for electric vehicles (first registration). | Exemption for cars emitting 50g CO2/km or less registered after 31 December 2009. | Minimum rate (€10) for BEVs. | ▬ |
| LITHUANIA | ▬ | ▬ | ▬ | ▬ |
| LUXEMBOURG | ▬ | Minimum rate of €30 per year for zero emission vehicles. | Monthly benefit in kind: minimum rate of 0.5% of vehicle’s value when new for BEVs and FCEVs. | Incentives as part of people’s annual tax return: § €5,000 for BEVs and FCEVs. § €2,500 for PHEVs emitting <50g CO2/km. |
| MALTA | Minimum rate for vehicles emitting less than 100g CO2/km. | Minimum rate for vehicles emitting less than 100g CO2/km. | ▬ | ▬ |
| NETHERLANDS | Exemption for zero-emission cars. | Exemption for zero-emission cars. 50% tariff for PHEVs |
Minimum rate (12%) for zero- emission cars. Cap at €40,000 for FEV. No cap for hydrogen cars. |
§ Subsidy scheme (SEPP) for private individuals to buy or lease a fully electric passenger car in the smaller or compact middle class. The subsidy scheme applies to both new and used electric passenger cars. § Environmental investment deduction (MIA) for BEV and FCEV light commercial vehicles and BEV taxis. § Arbitrary depreciation of environmental investments scheme (Vamil) for FCEV cars or taxis and BEV cars equipped with solar panels. For more details: https://www.rvo.nl/subsidie-en-financieringswijzer |
| POLAND | Exemption for BEVs and PHEVs ≤2,000cc (until the end of 2020). | ▬ | ▬ | ▬ |
| PORTUGAL | VAT deduction for BEVs (with value of less than €62,000) and PHEVs (with value of less than €50,000). | Exemption for electric vehicles. | Autonomous corporate income tax: § Exemption for BEVs. § Reduction for PHEVs. |
§ Private: €3,000 to buy a new BEV (car or van), limited to one vehicle per person. § Companies (limited to four vehicles): § €2,000 for cars. § €3,000 for vans. |
| ROMANIA | ▬ | Exemption for electric vehicles. | ▬ | Renewal scheme (RABLA) for passenger cars: § €10,000 to buy a new BEV. § €4,250 to buy a new PHEV with ≤50g CO2/km. § In addition, €1,250 for scrapping an old vehicle. |
| SLOVAKIA | § BEV registration is subject to a maximum charge of €33. § BEVs, or PHEVs combined with other fuel types or energy sources, are depreciated for two years. |
Exemption for BEVs. | ▬ | ▬ |
| SLOVENIA | Minimum rate (0.5%) for vehicles emitting less than 110g CO2/km. | ▬ | ▬ | Incentive scheme: § €7,500 for BEVs (cars). § €4,500 for BEVs (vans and heavy quadricycles). § €4,500 for PHEVs (cars and vans) and EREVs. § €3,000 for BEVs (light quadricycles). |
| SPAIN | § Exemption from ‘special tax’ for vehicles emitting up to 120g CO2/km. § Canary Islands: VAT exemption for alternative-powered vehicles (ie BEVs, FCEVs, PHEVs, EREVs, HEVs, CNG, LPG) emitting up to 110g CO2/km. |
Reduction of 75% for BEVs in main cities (eg Madrid, Barcelona, Zaragoza, Valencia, etc). | The use of a company car for private purposes is regarded as a payment in kind and included in the computation of personal income tax. | Incentive scheme (MOVES Plan) in 2020: § Cars: €4,000-€5,500 for BEVs and €1,900-€2,600 for PHEVs for private individuals, depending on whether a vehicle older than seven years is being scrapped. § Vans and trucks: between €4,400 and €6,000 for private individuals, depending on scrapping. IN addition, it also includes incentives for companies. For more details: https://www.idae.es/ayudas-y-financiacion/para-movilidad-y-vehiculos/plan-moves-ii |
| SWEDEN | ▬ | Low annual road tax (SEK 360) for zero-emission vehicles and PHEV (petrol). | ▬ | Climate bonus: § SEK 60,000 for new zero-emission cars and light trucks until 31 March 2021. From 1 April it increases to SEK 70,000. § SEK 59,286 for PHEVs with 1g CO2/km down to SEK 10,000 ≤ 70g CO2/km until 31 March. From 1 April, SEK 44,417 for PHEVs with 1g CO2/km down to SEK 10,000 for 60g CO2/km. § SEK 10,000 for CNG cars, light trucks/buses. § Premium for purchase of new electric buses and trucks. |
| UNITED KINGDOM | Exemption for zero-emission vehicles on first year VED. | Exemption for zero-emission vehicles on VED. | Minimum rate for zero-emission vehicles: § 0% in 2020-2021. § 1% in 2021-2022. § 2% in 2022-2025. |
Government grants (through dealers) for: § Zero-emission cars up to £2,500, if price is <£35,000. § Low emission vans, taxis and trucks. For more details: https://www.gov.uk/plug-in-car-van-grants |
