As electric cars become more commonplace, the tax incentives for buying them are being scaled back. What will the rules be for 2022?
New company car
We are, of course, referring to fully electric cars purchased in 2022. For cars acquired before 1 January 2022, the 2021 rules apply.
For company cars, the DET (Date of First Registration) is the decisive factor in this regard. From the DET onwards, the discount on the additional tax liability applicable at that time remains in force for 60 months. This discount is deducted from the basic additional tax liability, which has been 22% for a number of years.
For 2021 the discount for fully electric cars is 10%. On balance, the additional tax liability then amounts to 12% (22% -/- 10% = 12%).
For 2022 the discount will be reduced to 6%, thereby increasing the additional tax liability to 16% (22% -/- 6% = 16%).
The additional tax liability is calculated on the basis of the car’s list price. However, the discount does not apply to the full list price. In 2021, the discount applies to a maximum of €40,000 of the list price. In 2022, this will be reduced to €35,000.
| 2021 | 2022 | |
| Addition | 12% | 16% |
| up to a catalogue value of | € 40.000 | € 35.000 |
| Additional tax liability on the higher portion of the catalogue value | 22% | 22% |
Where the electricity for a fully electric car is generated using hydrogen or solar panels, the reduction in the additional tax liability applies to the total list price.
Private car
If you’re a private individual buying a fully electric car, you can receive a grant. This is possible NOT more when purchased in 2021 because this year’s budget has already been used up (for both new and second-hand cars).
For purchases made in 2021, the subsidy for a new electric car was still €4,000. If you buy such a car in 2022, you can receive a subsidy of €3,350. The subsidy budget for new cars is set to increase significantly for 2022.
The grant for the purchase of a second-hand electric car remains unchanged: €2,000.