Upcoming changes to workplace electric vehicle charging in France will require companies to account for the cost of electricity in their social contributions, potentially leading to increased expenses for both businesses and employees. While some employees may face new charges, others may have their free charging treated as a taxable benefit. Despite these adjustments, many workers remain open to paying for charging, as it remains more economical than charging on the road.
Changes Ahead for Electric Vehicle Charging at Work
If you currently commute to work using your own electric vehicle, brace yourself for some changes coming next year. The convenience of charging your vehicle at your workplace without incurring any costs will soon be a thing of the past. A recent regulatory update indicates that URSSAF will require companies to factor in the value of electricity used for charging in their social contributions calculations. This means businesses will face additional social charges, and employees will encounter new taxation related to the benefits they receive. This policy, which has been in effect since 2020, was designed to promote the adoption of eco-friendly, zero-emission vehicles.
Impact on Employees and Companies
This transition will undoubtedly affect the electric vehicle landscape in France, as well as your finances. Companies will be faced with a decision: either impose a fee for the electricity consumed through tailored tariff plans or continue providing free charging. However, if a business opts for the latter, they will incur new costs associated with social contributions. Consequently, owning and operating an electric vehicle will be more expensive for employees. Emile Josselin, the marketing director of Monta France, a global platform for managing charging points, has provided estimates to illustrate this. For instance, consider an employee who drives about 50 kilometers a day and primarily charges at work twice monthly, reaching a range of 300 kilometers. Previously, this charging was free, but now they could face costs. At an estimated rate of 9 euros per charge at a typical charging station, that could lead to an annual expense of about 200 euros, excluding vacation time when charging doesn’t occur. “These are certainly estimates, and actual costs will depend on whether they qualify as professional expenses, which may be reimbursed or deducted, or as taxable incentives,” the expert notes.
Are you prepared to pay for charging your electric vehicle at the office? This scenario reflects the case where the company opts to charge the full price for electricity. However, if the company decides to maintain complimentary charging to promote green mobility, this benefit may be categorized as a perk. In such a case, employees would need to report this benefit as income, which would be taxed according to their marginal tax rate, influencing how much more they might owe based on their earnings. The additional tax could easily add up to several dozen euros.
Despite these changes, many employees may still be willing to pay for charging at work. A study conducted by Yougov reveals that nearly 49% of respondents are open to using workplace charging, even if it comes at a cost. It’s important to note that charging at a standard station, whether at home or the office, tends to be significantly cheaper than charging on the go, such as at highway rest areas. For instance, achieving a 300-kilometer range through a home charge only costs around 9 euros, while fast charging at a highway stop can range from 20 to 30 euros, depending on the provider.
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