Electric Car: What About Kilometric Allowances?
This page is translated from the original post "Voiture électrique : quid des indemnités kilométriques ?" in French.
- 01/10/2023 16:22
To encourage the energy transition, France has established a favorable mileage allowance scale for electric vehicles.
As a significant fiscal lever for mobility in France, mileage expenses greatly impact household budgets, but also affect companies when they require their employees to travel using their vehicles.
The rise of electric cars raises the question of how these mileage expenses are calculated. Is the scale different? Encouraged? Denied? Mobiwisy provides an overview.
What are mileage expenses?
Set annually by the tax authorities, mileage expenses allow an employee to deduct from their taxes their transportation costs when driving their vehicle, provided these have a professional purpose. They apply to thermal, hydrogen, plug-in hybrid, or electric cars:
- for daily commutes between home and work
- for specific business trips
The mileage allowance scale corresponds to a flat-rate amount calculated based on:
- The fiscal horsepower of the vehicle
- The distances traveled
- The expenses incurred by the driver (vehicle depreciation, repair and maintenance costs, tires, fuel, auto insurance premium)
Exclusions include:
- Toll and parking fees;
- Interest on loans taken out for the vehicle’s purchase;
- Unexpected costs (repairs, accidents, etc.) unless they occur during professional travel.
Mileage allowance and electric cars: a 20% increase
Since 2021, electric vehicle drivers benefit from a more favorable mileage allowance scale. Specifically, a 20% increase is automatically applied to the declared flat-rate amount. Plug-in hybrid vehicles are not covered by this device.
For example, if your flat-rate mileage allowance is €4,000, you should add 20% of €4,000, which is €800. You thus receive a total allowance of €4,800.
How to calculate your mileage allowances in 2023?
For 2023, the mileage allowance scale for electric vehicles is as follows* :
| Fiscal horsepower | Up to 5,000 km | From 5,001 to 20,000 km | Beyond 20,000 km |
| 3 CV and less | d x 0.529 | (d x 0.316) + 1065 | d x 0.370 |
| 4 CV | d x 0.606 | (d x 0.340) + 1330 | d x 0.407 |
| 5 CV | d x 0.636 | (d x 0.357) + 1395 | d x 0.427 |
| 6 CV | d x 0.665 | (d x 0.374) + 1457 | d x 0.447 |
| 7 CV and more | d x 0.697 | (d x 0.394) + 1515 | d x 0.470 |
The battery leasing and related recharging costs (electricity supply) are considered fuel costs within the mileage scale.
Note that the more an employee uses their car, the lower the reimbursement scale. Finally, it is important not to mix allowances directly reimbursed by the company and personal mileage expenses in your tax declaration. Otherwise, a tax audit is guaranteed…
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