Simplified reimbursement of home-charging costs based on CREG tariffs confirmed for 2025

With the rise of hybrid and electric vehicles, reimbursing home charging electricity costs has introduced complex fiscal and organisational challenges for employers. To streamline these processes, a new circular introduces a simplified evaluation method for employers, relying on CREG tariffs, depending on the region of residence of the employee.

Reimbursing home-charging electricity

Employees with a hybrid or fully electric company car are taxed based on a fixed valuation of the benefit in kind. Providing a charging card does not impact the valuation of this benefit.

Until recently, reimbursement for home-charging electricity was equated with a fuel card under strict conditions:

• The employee must have an electric or plug-in hybrid company car;
• The reimbursement policy must be defined in the car policy;
• The charging system must have smart communication features to verify electricity usage;
• Reimbursement must be based on actual electricity costs.

Challenges in calculating real costs

The requirement to reimburse based on actual costs has proven challenging due to variables such as day vs. night rates, fixed vs. dynamic energy contracts, solar power usage, battery storage, and regional tariffs. These complexities create significant administrative burdens for employers.

Using CREG tariffs

To address these challenges, Circular 2024/C/77 introduces a temporary solution. While real-cost reimbursement remains the standard, employers can use fixed CREG-based rates from 1 January 2025, to 31 December 2025.

For each quarter, the tax administration will publish a maximum reimbursement rate per kWh for each region (Flanders, Brussels, Wallonia), based on average electricity prices, including energy costs, network fees, taxes, surcharges, and VAT.

For the first quarter of 2025, the maximum rates are:

• Flanders: €0.2822/kWh
• Brussels: €0.3294/kWh
• Wallonia: €0.3256/kWh

Employers can choose to:

• Reimburse based on the employee’s residence (regional rates apply), or
• Use the lowest regional rate across all employees, a choice that must be consistent for the calendar year.

The National Social Security Office (NSSO) has aligned its position with the tax circular.

Flexibility for past reimbursements

For reimbursements before 1 January 2025, the tax administration stated they will adopt a lenient approach, considering good-faith practices that relied on CREG dashboard data. This ‘retroactive’ flexibility is good news for employers who used this method without legal certainty.

Key takeaway

The new circular simplifies home-charging cost reimbursements for company cars, providing employers with a clearer, more pragmatic framework for 2025. While temporary, this approach represents a significant step toward reducing administrative burdens and ensuring compliance.

Author
Théo Jonckers, associate, Claeys & Engels