Electric company cars: tax levers and best practices (2025)

As regulatory pressure increases and the costs of combustion-engine vehicles soar, more and more companies in France are considering electrifying their fleet. But this transformation is not just about buying new vehicles. It means mastering a constantly changing tax and social security framework.
Here is an overview of tax best practices, pitfalls to avoid and optimisation levers to make your transition to an electric fleet a success.

Why go electric? A clear economic case

Beyond environmental considerations, the electric car is now a real cost-saving lever for companies.

Take a concrete example: over a 6-year period, an electric vehicle comparable to its combustion-engine equivalent can mean up to €7,000 in savings per year for the company. This is due in particular to:

• Full exemption from certain taxes
• A reduced benefit in kind for employees
• More favourable VAT recovery
• Lower maintenance costs
• And of course, much lower energy costs than petrol or diesel

What the tax rules say: what you need to know

At acquisition

Combustion-engine vehicles are penalised by:

• The ecological malus (registration penalty), which can reach €70,000 for the most polluting models
• The weight-based malus, which will apply from 2026 to all vehicles over 1.5 tonnes

By contrast, 100% electric vehicles are exempt from both penalties.

Another advantage: the battery and the chassis are treated separately for tax purposes. Only the chassis is subject to a depreciation ceiling (€30,000), while the battery is fully depreciable, with no ceiling.

During use

Day-to-day use of the vehicle also brings significant advantages:

• VAT on energy: 100% recoverable for electric vehicles (compared with 80% for petrol/diesel)
  
• Reduced benefit in kind:
  
  • Flat-rate valuation: 70% allowance (capped at €4,582 per year)
  • Actual-cost valuation: 50% allowance (capped at €2,000 per year)
• No benefit in kind on charging costs when they are paid by the company (until 31 December 2027)

On disposal: beware of the tax trap

When sold, combustion-engine vehicles are at a disadvantage: although their tax depreciation is capped (often at €9,900 or €20,300), the taxable capital gain is calculated without taking this cap into account. The result: you deduct little at the start, but you are still taxed normally at the end. Electric vehicles benefit from more favourable treatment: their depreciation ceiling is higher (€30,000 for the chassis), and the battery is fully depreciable. This helps spread the cost over the vehicle's lifetime and limit, or even avoid, taxation on disposal.

What about charging stations?

Many companies invest in charging stations on site or at employees' homes. Here are the tax rules to know:

• On site: no benefit in kind to declare if the charging stations are made available (for business and personal use) before the end of 2027.
  
• At home:
  
  • If the charging station is removed at the end of the contract → no benefit in kind
  • If the charging station is left in place → benefit in kind to calculate, based on the age of the charging station
  • Related costs (maintenance, subscription, etc.) are exempt up to 50% of the amount covered
    

Good to know: the Chargemap Business monitoring tool lets you reimburse electricity costs on a flat-rate or actual-cost basis for home charging, with reliable traceability.

Compare to decide better: a strategic reflex

One of the keys to success is the ability to compare scenarios: combustion, hybrid, electric. It is strongly recommended to carry out:

• Budget simulations over 5 or 6 years
• A detailed analysis of social security contributions related to benefits in kind
• A complete tax projection (depreciation, VAT, TVS, disposal, etc.)

The differences are sometimes spectacular. In some cases, the total cost of an electric vehicle is half that of its diesel equivalent.

In short: the right reflexes

Here are the key points to keep in mind to make your fleet's electric transition a success:

• Identify the most tax-efficient vehicles
• Take advantage of specific exemptions and ceilings
• Optimise benefits in kind and VAT recovery
• Think about the full life cycle: acquisition, use, resale
• Set up an efficient, traceable charging system
• Get support to carry out cost comparisons