Tax advantages
The French government wants to encourage the switch to electric vehicles, which is why it is now for you as a liberal professional to acquire an electric vehicle.
Amortization
By purchasing an electric caryou can claim a maximum tax deduction of 30,000 euros, as your vehicle emits less than 20g of CO₂/km. For example, if you buy a Tesla Model 3 at €44,990, after tax deduction, it will cost you €14,990.
You also have the option of fully depreciating the battery of your electric vehicle. a separate invoice for the car and the battery for this to be possible.
Tax on vehicle registration documents
In the case of a purchase of an electric vehicleyou'll need to register it. To do this, you'll need to pay the tax on the vehicle registration document. However, many regions allow you to be 100% exempt from this tax. Here's a summary table for each region.
| Regions | Regional tax (1 fiscal horse) | Exemption percentage for electric cars |
|---|---|---|
|
Auvergne-Rhône-Alpes |
43 € |
100 % |
|
Burgundy-Franche-Comté |
51 €
|
100% (0% from July 1, 2023)
|
|
Brittany
|
51 (€55 from May 1, 2023) |
50% (0% from May 1, 2023)
|
|
Centre-Val de Loire
|
49,80 €
|
50 % |
|
Corsica
|
27 €
|
100 %
|
|
Great East
|
48 €
|
0 %
|
|
Hauts-de-France
|
34,5 €
|
50 %
|
|
Île-de-France
|
46,15 €
|
100 %
|
|
Normandy |
35 €
|
100 %
|
|
New Aquitaine
|
45 €
|
0 % |
|
Occitanie
|
44 €
|
100% (until February 28, 2023) |
|
Pays de la Loire
|
51 €
|
0 %
|
|
Provence-Alpes-Côte d'Azur
|
51,20 €
|
100 %
|
|
Guadeloupe
|
41 €
|
0 %
|
|
French Guiana
|
42,50 €
|
0 %
|
|
Reunion Island
|
51 €
|
0 %
|
|
Martinique |
30 €
|
0 %
|
|
Mayotte
|
30 €
|
0 %
|
In the case of the Hyundai Ioniq 6, which has a tax rating of 6 hp, if you live in the Bourgogne Franche-Comté region, the tax on the vehicle registration document is 100% exempt until July 1st, after which date you will have to pay :
- 6 HP × €51 = €306
TVS exemption
The company car tax has been replaced by the annual CO2 tax and the annual pollutant emissions tax. If you were previously subject to this tax, the electric car you'll be exempt. This is because clean vehicles are not subject to these taxesbecause they emit very few greenhouse gases and pollutants.
Read also : Automobile taxation for the self-employed: complete guide
Take advantage of our leasing offers for electric cars
Ecological bonus
The ecological bonus is a financial aid granted by the French government to encourage the purchase of less polluting vehicles. This bonus is for private individuals and companies who purchase or lease an electricrechargeable hybrid or hydrogen-powered vehicle. The amount of the subsidy varies according to the type of vehicle and its level of CO2 emissions. Less-polluting vehicles benefit from a higher subsidy.
Conditions for using the ecological bonus in 2023
To benefit from the environmental bonus in 2023the following conditions must be met:
- the vehicle must be electric, hydrogen or a combination of the two
- the acquisition cost of the vehicle must be less than or equal to €47,000
- you must buy or rent it for a minimum of 2 years
- it must not have been resold in the year of purchase or have been driven less than 6,000 km
- not exceed 2.4 tonnes or 3.5 tonnes for category M2
Ecological bonus 2023
As a self-employed professional, you can benefit from amount of €3,000 for the ecological bonus.
For example, the purchase price of a Tesla Model 3 would be €41,990.
In the case of a 48-month, 10,000 km lease, the ecological bonus will reduce your monthly payment by €62.5 (€3,000 ÷ 48 months).
If you want to buy an electric van, the bonus will be €4,000. For example, if you buy a Renault Kangoo E-Tech at €33,600 list price, you'll pay just 29,600 € after deduction of the 2023 ecological bonus.
Documents to be supplied
To apply for the environmental bonushere are the documents you will need to provide:
- identification
- proof of residence in France less than 3 months old
- your payment details
- your tax notice for the year (N-1) in respect of income for the year (N-2)
For your purchased or leased vehicle, proof of final registration including :
- registration date
- date of first registration
- the national genre
- CE international category
- the energy source
- CO2 emissions per kilometer
- purchase invoice
Conversion bonus
The conversion bonus for electric vehicles is an incentive measure introduced by the French government to encourage the purchase of electric cars and contribute to the energy transition. This subsidy helps professionals to replace their old internal combustion vehicle with a new or used electric model. The conversion grant is subject to certain conditions, notably the age and type of vehicle to be replaced.
Terms and conditions of the conversion premium
In order to benefit from this aid, the following conditions must be met:
- first request
- your vehicle may be new or used
- purchase or lease of 2 years or more
- vehicle purchase price less than or equal to €47,000
- destruction of polluting vehicle
You can apply through your dealer, who will advance the amount of the grant, or you can apply on the dedicated websitewithin six months of the invoice date.
Amount
If you are a legal entity, the conversion premium is €2,500. If you operate in a low-emission zone (ZFE) such as Paris or Lyon, the amount will be increased by €1,000. This can be increased by up to €3,000 if your local authority (within a ZFE) awards a conversion bonus.
The Tesla Model 3 at €41,990 (ecological bonus deducted), with the conversion bonus, this electric car will be reduced to 36,490 if you benefit from the conversion bonus and the ZFE bonus.
For the purchase of an electric utility vehiclethe amount of the bonus will be :
- 5,000 € for class 1
- 7,000 € for class 2
- 9,000 € for class 3
Still with the Renault Kangoo E-Tech at €29,600 (ecological bonus deducted), being class 2, it will cost you €22,600.
Documents to be supplied
- a copy of the vehicle registration document of the used or new vehicle (low-emission vehicle, electric vehicle or rechargeable hybrid)
- a copy of the transfer certificate
- a declaration of the vehicle's purchase price, including all taxes or invoicing
- a copy of the registration document for the old vehicle being scrapped
- a copy of the certificate of destruction (Cerfa 14365*01)
- a certificate of non-registration for the vehicle being scrapped
- a bank details form for payment of the conversion premium
- non-taxpayers: a tax notice (income tax)
Discover the electric cars available from Beev
Regional aid
In addition to various government grants, low-emission zones also offer you the chance to reduce the purchase price of your electric vehicle. Let's take a look at some of the LEZs offering regional aid for liberal professionals purchasing an electric utility vehicle. Here, we'll take a look at the Île-de-France and Provence Alpes Côtes d'Azur regions.
Île-de-France region
The region Île-de-France region offers companies with fewer than 50 employees and annual sales of less than 10 million euros additional support over and above government grants.
Conditions
To qualify for regional assistance, you must meet the following criteria:
- companies with up to 50 employees
- annual sales under €10 million
- head office in Île-de-France
- more than one year
- vehicle catalog price under €50,000
- apply 3 months after vehicle purchase
Amount of aid Île-de-France
The amount of this regional aid is €6,000 for passenger cars and commercial vehicles weighing less than 3.5 tonnes. This can be combined with state aid for the liberal professions. You could therefore benefit from €13,500 (ecological bonus, conversion premium and regional aid).
Cumulative aid is limited to 50% of the cost of the vehicle.
Documents to be supplied
As a self-employed professional, you must provide the following documents:
- Kbis extract, or Sirene register notice, less than three months old
- for companies transporting goods for hire or reward :
- Community licence to transport goods for another valid company
- for craftsmen :
- valid D1 extract (registration of a craftsman in the trade register)
- for itinerant trade assistance :
- itinerant commercial or craft activity card
- Certificate of first application, not renewal
As part of a vehicle purchase :
- The definitive vehicle registration document
- vehicle order form
- An invoice less than three months old, bearing a statement that payment has been made.
Provence Alpes Côte d'Azur region
If your head office is located in the Provence Alpes Côte d'Azur regionHere's how you can help buy or lease your own company vehicle.
Conditions
- The purchase of a new vehicle with zero or low emissions;
- The purchase of a used vehicle with zero or low emissions, provided that it has not already received assistance under the present scheme;
- Rental with purchase option or leasing of a new vehicle with zero or low emissions.
- Making your first request
- Vehicle under 3.5 tonnes
- Keep your vehicle for at least five years after purchase, or lease for two years.
Amount
The following amounts apply:
- electric car weighing between 1.7 and 2.5 tonnes: €3,000
- electric vehicle weighing between 2.5 and 3.5 tonnes: €6,000
Application documents
To apply, you must submit all your administrative documents on the dedicated platform and provide a quotation or order form proving the purchase or lease of your vehicle, specifying whether it is new or used.
See also: Regional aid for electric cars
Aid for charging stations
Regarding support for the installation of charging stationsThere are no longer any government subsidies for self-employed professionals. However, as a private individual, you can install a recharging solution at your home and benefit from the following subsidies.
Reduced VAT rate
Since 2014, the government has reduced the VAT rate on charging stations from 20% to 5.5. What's more, since January 1, 2023, this reduction has been available on all homes, including those built less than two years ago.
Tax credit for charging stations
If you install your own charging station, you can apply for a tax credit.
The tax credit is a deduction from your income tax. By making this request, you will be able to deduct €300 per charge system. It is limited to two load systems per tax household.
To qualify, you must :
- be domiciled in France
- install a recharging solution in your main or second home.
Read also: Support for the installation of charging stations in 2023
Conclusion
As a self-employed professional, you can benefit from a number of government grants for the acquisition of an electric car in 2023, including the bonus écologique and the prime à la conversion.
These government subsidies will enable you to make substantial savings on the purchase or lease price of your vehicle. With new low-emission zones due to come into force in 2025, a number of regional subsidies have been introduced, such as in the Île-de-France and Provence Alpes Côtes d'Azur regions. These will make it easier for the self-employed to acquire an electric vehicle. All you need to do is meet the eligibility criteria set out above, and submit your applications on the platforms provided.
What's more, you can also benefit from a tax deduction thanks to a €300 tax credit, as well as a reduction in the VAT rate for the installation of a recharging solution in your home.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
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