Home charging costs. Flat-rate reimbursement based on CREG tariffs confirmed in a tax circular starting 2025!

With the rise in the number of hybrid and electric cars, the issue of reimbursing electricity costs for home charging raises complex (para)fiscal and organisational challenges. To simplify these procedures, a new Circular offers a simplified evaluation method for employers, based on CREG tariffs.

Reimbursement for home-charging electricity

Employees with a hybrid or fully electric company car are taxed on a flat-rate benefit in kind. If a charging card is also provided, it has no impact on the value of this benefit in kind.

Until recently, the Finance Minister’s position was that the reimbursement of electricity charged at home could be equated to providing a fuel card only if the following conditions were met:

• The employee has an electric/hybrid company car;
• The reimbursement of electricity charged at home is included in the car policy;
• The charging system is equipped with smart communication technology allowing the employer to verify the quantity of electricity consumed; and
• The reimbursement of electricity consumed at home is based on actual electricity costs.

Challenges in calculating actual costs

However, the last condition has always been difficult to implement due to the complexity of accurately evaluating the cost of electricity consumed for the home charging of a company car and the related administrative burden. Several factors must be considered: day and night rates, fixed, variable, or dynamic energy contracts, contract change(s) during the year, electricity from solar panels, home battery storage, capacity rate, etc.

Using CREG tariffs

On 5 December 2024, Circular 2024/C/77 was published to provide a (temporary) solution. The principle remains that reimbursement must be based on actual costs, but for the period from 1 January to 31 December 2025, a flat rate based on CREG data may be used for reimbursement.

For each quarter, a maximum fixed amount per kWh will be determined and published by the tax administration for each Region (Flanders, Brussels, Wallonia), based on the average commercial electricity price. This calculation includes the energy price, grid costs (transmission, transport, distribution), taxes, surcharges, and VAT.

For the first quarter of 2025, the maximum rates per kWh by Region are:

• Flemish Region: EUR 28.22/kWh;
• Brussels-Capital Region: EUR 32.94/kWh;
• Walloon Region: EUR 32.56/kWh.

Employers will also have the option to:

• Either consider each employee’s place of residence: the applicable maximum rate will then depend on the Region where the employee lives.
• Or ignore their employees’ place of residence: the lowest rate among the three Regions will apply. This decision must be maintained throughout the entire calendar year.

The ONSS (National Social Security Office) has not yet taken a position on the matter, but it is highly likely (and logical) that it will follow the tax administration’s stance.

Flexibility for previous years

For electricity costs reimbursed before 1 January 2025, the administration will assess reimbursements made in good faith with flexibility, relying on CREG dashboard data. This will be a relief for many employers who already use this method but without legal certainty

Key message

The new Circular provides a solution to simplify the reimbursement of home charging costs for company vehicles. Thanks to this Circular, employers now have a clearer and more pragmatic framework – at least for 2025!