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)
|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
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|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:
– €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: 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.||▬|
|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