Further benefits for the purchase of e-vehicles

Further advantages for employers:

1) The use of electric vehicles is attractive under tax law, as their private use can be granted tax-free, in contrast to motor vehicles with CO2 emissions. For electric vehicles with range extenders or hybrid vehicles, a benefit in kind is still to be assessed depending on the CO2 emission values.

2) If employees are provided with an electric vehicle for private use instead of a cash amount to which they were previously entitled, this constitutes a so-called "conversion of benefits". As a rule, this also does not lead to a taxable benefit in kind, but it is likely that social security contributions will still be payable.

3) In addition, the assumption of costs for the charging of e-vehicles (also e-bikes and e-mopeds) by employers is fiscally attractive: If the employer bears the costs directly or if private e-vehicles can be charged free of charge on the company premises, no taxes are due for this benefit without upper limit. The tax-free reimbursement of charging costs to employees is possible for a limited period of time until the end of 2025 with an amount of 30 euros per month, if their charging devices are demonstrably not able to make an exact cost allocation to a specific vehicle. In addition, employers can support the purchase of a wallbox with up to 2,000 euros tax-free.

4) Electric vehicles also offer VAT advantages. Emission-free electric vehicles generally entitle employers to an input tax deduction. However, the full input tax deduction is capped at gross acquisition costs of 40,000 euros and is waived in full for costs exceeding  80,000 euros (also for leased vehicles). In most cases, current expenses in connection with electric vehicles entitle the taxpayer to an input tax deduction regardless of the acquisition costs. For the private use of company electric cars by employees, there is no ongoing VAT burden despite the entitlement to input tax deduction, as the value in kind (of 0 euros) is used as the basis of assessment.

5) For employers who want to support their employees in terms of e-mobility without their own vehicles, there will be another option from 2023: e-car sharing (also applies to sharing models of bicycles and e-motorcycles). Subsidies for non-work-related journeys within the framework of car sharing models can be granted up to 200 euros per calendar year. However, the subsidy must be paid directly to the car sharing provider or in the form of vouchers.

Further advantages for private individuals:

1) The Ministry of Climate Protection and the car importers relaunched the e-mobility subsidy on Monday, 30 January 2023. Private individuals will receive a subsidy of 5,000 euros for the purchase of an electric car. Applications can be submitted now at umweltfoerderung.at. A total of 95 million euros is available for the e-mobility offensive this year.

2) Private charging infrastructure is subsidised with 600 euros for wallboxes and with 1,800 euros for communal installations in multi-apartment buildings. A company charging facility is subsidised with up to 30,000 euros.

3) The purchase of an e-motorcycle is subsidised with up to 1,900 euros. For plug-in hybrids there are changes in the funding and a separate funding track has been established for regions with few e-charging stations. Applications for the subsidies are now possible at umweltfoerderung.at. Since the beginning of the year, plug-in hybrids must be able to cover 60 kilometres in purely electric mode in order to qualify for a subsidy of 2,500 euros (previously 50 kilometres was sufficient).