Tax advantages
The government wants to encourage the switch to electric vehicles, which is why it is now As a self-employed professional, it's more advantageous for you to acquire an electric vehicle.
Amortization
By acquiring a electric carIf your car emits less than 20g of CO₂/km, you can claim up to €30,000 in tax relief. For example, if you buy a Tesla Model 3 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, however, you should ask a different invoice for the car and the battery to make this possible.
Tax on vehicle registration documents
In the case of a purchase of an electric vehicleyou will need to register it. To do this, you have to pay the tax on the vehicle registration document. However, in many regions, up to 100 % of this tax is waived. Here is a summary table for each region.
| Régions | Montant de la taxe régionale (1 cheval fiscal) | Pourcentage d’exonération pour les voitures électriques |
|---|---|---|
Auvergne-Rhône-Alpes | 43 € | 100 % |
Burgundy-Franche-Comté | 51 € | 100 % (0 % from 1 July 2023) |
Brittany | 51 (€55 from 1 May 2023) | 50 % (0 % from 1 May 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 % |
Occitania | 44 € | 100 % (until 28 February 2023) |
Pays de la Loire | 51 € | 0 % |
Provence-Alpes-Côte d'Azur | 51,20 € | 100 % |
Guadeloupe | 41 € | 0 % |
French Guiana | 42,50 € | 0 % |
La Réunion | 51 € | 0 % |
Martinique | 30 € | 0 % |
Mayotte | 30 € | 0 % |
In the case of the Hyundai Ioniq 6, which has a tax rating of 6 bhp, if you live in the Bourgogne Franche-Comté region, the tax on the vehicle registration document is exempt at 100 % until 1 July, after which date you will have to pay :
- 6 HP × €51 = €306
TVS exemption
Company car tax has been replaced by the annual CO2 tax and the annual pollutant emissions tax.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 allows you to be exempt. This is because clean vehicles are not subject to these taxesThis is because they emit very few greenhouse gases and pollutants.
Read also : Car taxation for the self-employed: full guide
Take advantage of our leasing offers for electric cars
Ecological bonus
Le environmental bonus is financial assistance granted by the French government to encourage the purchase of less polluting vehicles. This allowance is for private individuals and companies buying or leasing an electric vehicleor hydrogen-powered vehicle. The amount of the grant varies according to the type of vehicle and its level of CO2 emissions. The least polluting vehicles benefit from a higher subsidy.
Conditions for using the ecological bonus in 2023
To benefit from environmental bonus in 2023Here are the conditions you must meet:
- 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 at least 2 years
- it must not have been resold in the year of purchase or have travelled less than 6,000 km
- not exceed 2.4 tonnes or 3.5 tonnes for category M2
Amount of the 2023 ecological bonus
As a self-employed professional, you can benefit from in the amount of €3,000 for the environmental bonus.
For example, the purchase price of a Tesla Model 3 will be €41,990.
On a 48-month, 10,000 km lease, the environmental 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 will only have to pay 29,600 € after deduction of the 2023 ecological bonus.
Documents to be supplied
To apply for environmental bonusYou will need to provide the following documents:
- identity document
- 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 :
- the date of registration
- the date of first registration
- the national genre
- the international CE category
- the energy source
- CO2 emissions per kilometre
- a purchase invoice
Conversion premium
The conversion premium 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 grant helps professionals to replace their old thermal vehicle by a new or second-hand electric model. This conversion premium is subject to certain conditions, in particular the age and type of vehicle to be replaced.
Terms and conditions of the conversion premium
To qualify for 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
- purchase price of the vehicle less than or equal to €47,000
- destruction of the polluting vehicle
The application can be made by your dealer, who will advance the amount of the aid, or you can make the request via dedicated websitewithin six months of the invoice date.
Amount
If you are a legal entity, the amount of the conversion premium is €2,500. If you drive 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) grants aid of the following type conversion premium.
The Tesla Model 3 at €41,990 (less the environmental bonus), with the conversion premium, this electric car will therefore rise to 36,490 if you benefit from the conversion allowance and the ZFE bonus.
For the purchase of a electric vanthe amount of the bonus will be :
- 5,000 for class 1
- 7,000 for class 2
- 9,000 for class 3
Again with the Renault Kangoo E-Tech at €29,600 (after the environmental bonus), being a class 2 vehicle, it will cost you €22,600.
Documents to be supplied
- a copy of vehicle registration document used or new vehicles (low-pollution vehicles, electric vehicles or rechargeable hybrids)
- a copy of the transfer certificate
- a declaration of the purchase price, including all taxes, or the invoice for the vehicle
- 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-taxable persons: a tax notice (taxable income)
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 cost of purchasing your electric vehicle. Let's take a look at some of the EPZs that offer regional aids for self-employed professionals purchasing an electric van. Here, we'll look at the Île-de-France and Provence Alpes Côtes d'Azur regions as examples.
Île-de-France Region
The region Île-de-France offers companies with fewer than 50 employees and annual sales of less than €10 million the opportunity to receive assistance in addition to that provided by the government.
Conditions
For your application for regional aid to be accepted, you must meet the following criteria:
- companies with up to 50 employees
- annual sales of less than €10 million
- head office in Île-de-France
- more than one year
- catalogue price of the vehicle less than €50,000
- apply 3 months after purchasing the vehicle
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 self-employed. You could therefore benefit from €13,500 (ecological bonus, conversion premium and regional aid).
Cumulation of aid is limited to 50 % of the price of the vehicle.
Documents to be supplied
Here are the documents you need to provide as a self-employed professional:
- Kbis extract, or notice of registration in the Sirene register, less than three months old
- for companies transporting goods for hire or reward :
- a valid Community haulage licence for another company
- for craftsmen :
- valid D1 extract (registration of a craftsman in the trade register)
- for aid to the itinerant trade :
- itinerant commercial or craft activity card
- Proof of first application, not renewal
As part of a vehicle purchase :
- The definitive vehicle registration document
- the vehicle order form
- An invoice less than three months old, bearing a statement of settled payment
Provence Alpes Côte d'Azur Region
If your head office is located in the Provence Alpes Côte d'Azur regionHere's how you can get help to buy or rent a clean vehicle for your business.
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 aid under this scheme;
- Rental with purchase option or leasing of a new vehicle with zero or low emissions.
- Making your first application
- Vehicles under 3.5 tonnes
- Keep your vehicle for a minimum of five years after purchase or a two-year lease.
Amount
The following amounts apply:
- electric car weighing between 1.7 tonnes 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 to 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.
Read also : Regional aid for electric cars
Aid for charging stations
Concerning aid for the installation of charging stationsAs a business, there is no longer any State aid for the self-employed. However, as a private individual, you can install a recharging solution in your home and benefit from the following grants.
Reduced VAT rate
Since 2014, the government has reduced the rate of VAT on charging points from 20 % to 5.5 %. What's more, from 1 January 2023, it will be possible to claim this reduction on all homes, including those built less than two years ago.
Tax credit for charging points
If you install your own charging point, 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 charging system. It is limited to two charging 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 points in 2023
Conclusion
As a self-employed professional, you can benefit from a number of government grants for the purchase of a electric car in 2023, in particular the ecological bonus and the conversion premium.
This government aid 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 grants have been introduced, including in the Île-de-France region and the Provence Alpes Côtes d'Azur region. These will make it easier for self-employed people to buy an electric vehicle. All you need to do is meet the eligibility criteria set out above, and submit your applications on the relevant platforms.
What's more, you'll also be able to claim a tax deduction of €300 thanks to the tax credit, as well as a reduction in the rate of VAT 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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