What tax benefits are there when purchasing an electric car?
October 14, 2023 | 40,00 EUR | answered by Dietrich Hohenadel
Dear Sir or Madam,
My name is Jessica Sontheimer and I am currently considering purchasing an electric car. However, as I do not have sufficient knowledge about the tax benefits in this area, I am reaching out to you as experts.
Currently, I drive a conventional gasoline car and have decided to switch to an electric vehicle for various reasons. In addition to the environmental aspect, I am also interested in potential tax benefits that could be advantageous to me when buying an electric car.
I am concerned that I may not be able to take advantage of potential tax benefits because I am not adequately informed. Therefore, I would like to know from you what specific tax benefits there are when purchasing an electric car. For example, are there tax reliefs on purchase, vehicle tax, or vehicle depreciation?
Furthermore, I am interested to know if there are other tax advantages that I, as an owner of an electric car, can avail of. For example, in terms of using the vehicle for business purposes or installing a charging station at home.
I would appreciate it if you could detail all the possibilities for me on how I can benefit from tax advantages as a future owner of an electric car. Thank you in advance for your assistance.
Sincerely,
Jessica Sontheimer
Dear Mrs. Sontheimer,
Thank you for your inquiry regarding the tax benefits when purchasing an electric car. I am pleased that you are considering choosing an environmentally friendly vehicle and that I can assist you in clarifying the tax aspects.
There are indeed various tax benefits to consider when purchasing an electric car. Firstly, when buying an electric vehicle, you can benefit from a government subsidy in the form of an environmental bonus. This consists of a grant from the Federal Office for Economic Affairs and Export Control (BAFA) as well as a manufacturer's contribution. This means you can receive a financial contribution that reduces the purchase price of the electric car.
Furthermore, electric cars are exempt from vehicle tax. This means you do not have to pay an annual tax for your vehicle, which represents a significant saving compared to conventional vehicles. This tax exemption generally applies for a period of 10 years from the initial registration of the electric car.
You can also benefit from tax advantages in the depreciation of the electric car. Electric cars are considered "particularly environmentally friendly" vehicles, so you can benefit from an increased depreciation of 50% in the year of purchase and the following four years. This means you can deduct the acquisition costs for tax purposes more quickly.
In addition to these tax benefits, there are other incentives that you can take advantage of as the owner of an electric car. If you use the electric vehicle for both personal and business purposes, you can deduct the costs of the vehicle proportionally as operating expenses. The installation of a charging station at home may also be tax deductible, especially if you use the electric car for business purposes.
Overall, electric cars offer a variety of tax benefits that are worth considering when purchasing an electric vehicle. If you have any further questions or would like personalized advice, I am happy to assist you.
Best regards,
Dietrich Hohenadel
