Who pays the charging costs for electric company cars?

Greening company fleets raises many questions. As well as getting into new habits to charge an electric company car, you also need to know who pays the bill. Especially since each company may have its own policy on the matter. What are the different options? What does French law say? What do you need to know about reimbursing employees' home charging costs? Here is an overview!

Options for reimbursing charging costs

First, it is worth going back over the difference between a pool vehicle and a company car. The first is used only for business trips, while the second can also be used for personal purposes. Reimbursing costs is therefore more complex for a company car, since in most cases companies only reimburse expenses related to business journeys. In both cases, however, several options are possible.

Reimbursing charging costs at the office

The simplest solution for a company is to install charging stations in its private car park and make them available to employees. This way, the costs of charging company cars are billed directly to the company. As the employee pays nothing, there is no reimbursement to plan for, at least if the charging is for business use.

Since 1 February 2025, URSSAF (the French social security contributions agency) has applied new rules on providing charging stations at the workplace. Until 31 December 2027, when an employer provides employees with charging stations for electric or hybrid vehicles, the benefit in kind resulting from personal use of the charging stations is valued at €0. So even in the case of personal use, no benefit in kind needs to be declared.

Reimbursing home charging costs

Since the order of 25 February 2025, the rules on installing charging stations at employees' homes are clearer. If the employer pays for the purchase and installation of the charging station, and it is recovered at the end of the employment contract, no benefit in kind needs to be declared. However, if the charging station stays with the employee, the amount covered is exempt from benefit in kind under certain conditions:

• The charging station is less than 5 years old: the amount covered must not exceed 50% of the costs the employee would have had to pay, up to €1,043.50 (value at 1 January 2025).
• The charging station is more than 5 years old: the limit rises to 75% of the costs, with a cap of €1,565.20 (value at 1 January 2025).

Above these thresholds, only the excess is considered a benefit in kind.

However, as with personal charging at the workplace, it is important to distinguish costs related to business travel from those related to personal travel. There are two possible reimbursement methods:

• Flat-rate reimbursement: the company estimates the charging costs related to business use (number of kilometres, average consumption, etc.) and pays a monthly allowance based on an average.
• Reimbursement of actual costs: this is based on the expense claims submitted by employees. This solution is fairer, since actual expenses are reimbursed rather than an estimate. However, it is more complicated to implement, as expense claims must be backed up by reliable means, such as a sub-meter or a charging station connected to a monitoring console. A home charging reimbursement solution automates this calculation using the actual data from each charging session.

Reimbursement at public charging stations

When travelling, an electric company car can only be charged at public charging stations. In this case, the reimbursement options are similar to those familiar to drivers of combustion-engine cars.

The employee can pay for the charging and claim reimbursement through an expense claim, backed up by a detailed invoice. The company can also provide a charging card, which works like a fuel card and lets drivers pay at a very large number of public charging stations.

The legal and regulatory framework

Reimbursing the costs of charging a company car is governed by French law, and also monitored by URSSAF, which ensures that business expenses and benefits in kind are correctly distinguished.

Current legislation on EV charging costs

Under the order of 20 December 2002, expenses incurred by an employee for their professional activity must be reimbursed by their employer. This reimbursement can be flat-rate or based on actual costs, through expense claims.

The costs of charging a pool vehicle or a company car for business travel are therefore considered business expenses.

This notion should be distinguished from benefits in kind, which are services provided by the employer to the employee. For example, if the company reimburses the costs of going on holiday with your company car, this is a benefit in kind. The company is not obliged to do so.

For a company car, it is important to distinguish business expenses from benefits in kind, as they are not subject to the same tax rules, for either the employer or the employee.

Tax implications for employer and employee

URSSAF (the French body that collects social security and family allowance contributions) collects the various contributions and checks that they comply with current legislation.

It therefore makes sure that companies correctly categorise business expenses and benefits in kind. A mistake can have a financial impact on both employer and employee:

• Business expenses, including travel expenses, are excluded from social security contributions and therefore from the employee's taxable income.
• Benefits in kind are subject to employer and employee social security contributions and form an integral part of the employee's remuneration. They are therefore included in the employee's taxable income.

In both cases, these expenses are deductible from the company's taxable profit.

Best practices for managing charging costs

Between the different charging options and the legal and tax obligations, it is not easy to find the best way to manage the reimbursement of charging costs for an electric company car. Fortunately, solutions exist.

Drawing up clear, transparent policies

First, it is essential to define a clear reimbursement policy that applies to all the company's employees. It can include the reimbursement terms and the rules for using the charging stations at the workplace (if any).

It must be easily accessible to every employee and clear enough to avoid confusion. It should also be reviewed regularly to keep up with changes in prices and equipment, as well as feedback.

Using technology and management software

Various tools make management easier and help distinguish between business and private use of charging stations. They let you monitor your fleet's charging remotely, whether at company charging stations, at home or on the road. You get full visibility of the expenses incurred, as well as the reimbursements to be made.

As a partner in companies' electric transition, the Chargemap Business team offers these innovative, intuitive tools. But that's not all! It supports professionals across the board and advises them to best meet their needs and those of their employees. Questions about reimbursing charging costs for electric company cars? The Chargemap Business experts will be happy to help and answer your questions.