How high is the allowance that the employer may give untaxed to the employee for charging at the employee's home of the electric car provided to the employee?
That question is answered in a recently published position from a knowledge group of the Tax Administration. This includes how to deal with electricity generated by the employee using solar panels.
Choice
The employer has the following choice:
- an untaxed reimbursement for the employee's actual expenses (intermediate costs) or;
- a business transaction.
Intermediate costs
The employer may give the employee the full cost reimburse the electricity used for charging the car. The integral cost is the sum of the variable and fixed costs divided by the kWh consumed by the employee. This includes a proportionate share of the depreciation on the solar panels and any other costs of the solar panels. The energy price cap can reduce the integral cost.
Business transaction
A business transaction means that employer and employee agree on the resupply of electricity on business terms. Energy from solar panels can also be supplied by the employee. This business transaction then takes place outside the salary sphere.
It is not very clear from the knowledge group's position what is meant by “business terms”. The position does mention that there is no business transaction when the employer's remuneration is based on an average price set by CBS. In the position on Reimbursement of charging of company car elaborates and substantiates this. This position states that a fixed reimbursement for the employee's charging costs is in principle possible, but must be substantiated by a study of the actual costs of all employees. However, it is noted right away that this seems unfeasible, as there is no homogeneous group as far as electricity costs are concerned.
VAT
In principle, the employee must pay VAT on the electricity (re)supplied to the employee. As long as the total remuneration on an annual basis does not exceed the registration threshold (€1,800), the exemption of the small business allowance (KOR) can be applied. If the registration threshold is exceeded, this exemption must be claimed in advance. The threshold of the KOR (€20,000) will not be exceeded with only charging one electric car. For both the registration and KOR thresholds, turnover with all entrepreneurial activities will count.
Higher compensation
Obviously, employers must be able to substantiate untaxed allowances given to the employee. The input for this will have to come from the employee. If the Inland Revenue considers that the reimbursement is higher than business or than the (integral) intermediate costs, the Inland Revenue must make this plausible. In that case, the excess is of course taxed with payroll tax. Unless it is significantly unusual, this part can be placed in the free space of the work-related costs scheme.
Private car
There is also a knowledge group position on the free charging of the private electric (or hybrid) car at the charging station at the workplace. This is a benefit from employment, which may not be valued at nil. The electricity charged for the private car counts towards the maximum untaxed travel allowance of €0.21 (up to and including 2022 €0.19).
However, if the employee's electric bicycle or mobile phone is charged for free at work, this wage may be valued at nil.