With the rise of electric vehicles, more and more companies are investing in electrified fleets. This transition involves new accounting practices, including accounting for electric vehicle charging and the application of VAT. This article guides you step by step to properly manage these operations, avoid errors and optimize the tax management of your electric vehicles.
Accounting for charging for electric vehicles
The accounting of electric vehicle charging depends on the mode of use of the vehicle, as developed byIndy : company vehicleouPersonal vehicle used for professional purposes.
Reloading of company vehicles
Where the company owns the vehicle, charging costs are considered professional charges. The accounts must then record these expenses correctly in order to be able to deduct them taxably. There are usually two situations:
- Recharge in enterprise:if the vehicle recharges at a charge point installed in the company, the electricity bill is recorded in the corresponding charge account, often6063 – Electricity supplies. This expenditure includes electricity consumed for the vehicle. In addition, it is important to keep an accurate record of vehicle-specific consumption to justify the deduction;
- Charge on a public or home terminal:For external recharging, the company can reimburse its employees via fee notes. In this case, the expenditure is recorded in an expense account as6251 – Travel, Missions and Receptions. It is imperative that the employee provide the invoice or proof of recharging so that the company can properly account for the expense.
Reloading of personal vehicles for professional use
If the employee uses his personal vehicle for business trips, the company can reimburse the charge via the kilometric scale or a flat-rate refund. In this case, the accounting shall be made in the account6251 – Reimbursement of expenses.
⚠️ Tip: personal expenditure must always be separated from professional expenditure in order to avoid any dispute with the tax administration.
VAT applicable on professional electric recharges
The question of VAT (Value added tax) is crucial for businesses. According to French legislation, the recovery of VAT on recharging depends on the use of the vehicle and the place of recharging.
VAT on company rechargings
If the vehicle belongs to the company and the charge is made at a terminal installed on the site, VAT is100% recoverable. The company can deduct VAT on the electricity bill recorded in the accounts.
VAT on non-business recharging
For charging at public or home terminals, the recovery of VAT can be more complex:
- Public terminals: the invoice issued by the provider generally includes VAT, which the company can deduct if the vehicle is used for professional purposes;
- Home dischargeVAT on electricity consumed by an individual is generally not recoverable unless a specific contract is signed with the employer to reimburse the electricity consumed for professional purposes.
Special features for plug-in hybrid vehicles
For hybrid vehicles, only the consumption related to electric charging is concerned. Fuel and electricity must be distinguished in the accounts in order to apply VAT correctly.
⚠️ TipAlways keep the consumption records and detailed invoices to justify the recovery of VAT in the event of a tax check.
Tips to optimize charging accounting
The accounting management of electric vehicles may seem complex, but some good practices simplify the process and optimize tax recovery. Here are some of them:
Install dedicated charging terminals
By installing terminals directly in the company, you facilitate the distinction between professional and personal use. This also makes it easier to recover VAT and monitor electricity consumption accurately.
Use consumer monitoring tools
Fleet management applications and software enable real-time charging to be tracked. These tools automatically generate reports that you can integrate into accounting, reducing errors and simplifying VAT calculation.
Establish a clear reimbursement protocol
For employees using their personal vehicle, define a specific protocol for the reimbursement of charging costs. Include the type of evidence accepted (invoices, charging applications, statements), and specify the accounting account to be used. This ensures tax compliance and avoids ambiguities.
Separate consumption
For hybrid vehicles or personal vehicles used for work, it is essential to distinguish electricity used for professional purposes from that used for personal use. This makes it possible to optimise VAT recovery and avoid any questioning by the tax administration.
Train accounting staff
Specific training on accounting for electric vehicles and applicable VAT allows your team to better manage expenses, avoid errors and optimize tax deductions.
En résumé
Accounting for electric vehicle charging and associated VAT management are key topics for companies wishing to optimize their electric fleet. By properly distinguishing the different types of expenditure, monitoring consumption and applying the tax rules rigorously, you can maximize your tax benefits and simplify accounting management.
