What is depreciation?
Limit on purchase price excluding deduction of depreciation or rent :
| > 155g/km | > 60 g/km et < 155 g/km | > 20 g/km et < 60 g/km | < 20 g/km |
|---|---|---|---|
|
< 9 900€ |
< 18 300€ |
< 20 300 € |
< 30 000 € |
Calculate non-deductible amortization (AND)
When a company acquires an electric vehicle, it is depreciated and shown on the balance sheet as a fixed asset. In the case of a leased electric vehicle, the AND is calculated on the basis of the depreciation period used by the leasing company. The difference between the financial value of the vehicle and the non-deductible depreciation ceiling is divided by the depreciation period.
Read also: Everything you need to know about long-term leasing for electric cars
The financial value is obtained by adding to the catalog price (after deduction of any discount); optional equipment or accessories, the cost of transport and delivery charges.
- AND = (financial value of vehicle - non-deductible depreciation ceiling) / vehicle depreciation period
- Financial value = vehicle catalog price + availability + options/accessories + transport costs - discount granted.
- Cars and LCVs must be depreciated on a straight-line basis over 4 or 5 years (i.e. at a rate of 25% or 20% per year).
What you need to know about the depreciation rate
As for the annual amortization rate, is 20% or 25%.depending on the lessor, depreciation must be straight-line over 4 or 5 years.
For companies and professionals subject to VAT, the full amount of the tax applied to the leasing of commercial vehicles can be reclaimed for the duration of the contract. This does not apply to passenger cars.. Fuel is also eligible for VAT recovery, at 100% for diesel, LPG, CNG and electric cars, but not for petrol.
An employee (manager or not) can also opt to deduct actual business expenses for a given tax year. In the case of a vehicle for business use, lease payments are not tax-deductible, However, expenses incurred for use or maintenance are, subject to certain conditions.
Accounting benefits of electric vehicles
For several years now, the French government has been encouraging companies to use "clean" vehicles. To this end, it has created two ceilings for non-deductible depreciation, depending on the vehicle's CO2 emissions (a measure which excludes commercial vehicles, which can be fully depreciated).
This tax measure aims to favor low-polluting vehicles and penalize those that pollute the most. These ceilings can have a significant impact on the amount of the bonus/malus and the tax on the use of passenger vehicles for economic purposes.
In keeping with the aim of encouraging French companies to drive cleanly, hybrid and electric vehicles are given priority when it comes to the taxe sur l' affectation des véhicules de tourisme à des fins économiques. This tax is payable on November 30 of each year by any company with its head office or an establishment in France that owns or uses a fleet of cars. The progressive scale is determined according to each vehicle's CO2 emissions. Under the 2015 rules, electric vehicles are fully exempt. Hybrid vehicles whose CO2 emissions do not exceed 110g/km are exempt for 8 quarters.
For other types of vehicle, the tax rate applicable in 2015 per gram of CO2 emitted varies from €0 (up to 50 g/km) to €27 (over 250 g/km.) To this amount has been added since October 2014 a surcharge targeting older vehicles or those with a more polluting diesel engine. Overall, for CO2 emissions of less than 50 g/km, the minimum tax on the use of passenger vehicles for economic purposes rises to €20 for a recent vehicle running on petrol.
Ecological bonus and malus terms and conditions
In 2022, only electric vehicles will be eligible for the bonus, while existing combustion-powered vehicles with high emissions will be subject to a malus. The maximum ecological bonus is €4,000, up to a limit of 27% of the vehicle's priceFrom January 1, 2023, it will be capped at €3,000. It will also be reduced from €2,000 to €1,000 for electric cars, and from €47,000 to €60,000.
As for the malus, it applies from 131 grams of CO2 per kilometer (€150) and rises to €8,000 above 200 g/km of CO2.
In the case of long-term leasing, a minimum period of 24 months is required to qualify for the bonus, otherwise the vehicle must be returned.
Further information: Ecological bonus 2023: everything you need to know
