Easy Billing: Overview of Models
More and more companies are turning to electromobility and offering their employees electric company cars. But how does charging and billing for home charging work? Here are the most important information and options:
Flat Rate Instead of Calculation Stress
A simple option is for the company to pay a monthly flat rate. This flat rate can vary depending on the type of vehicle and the availability of a charging option at the workplace. For electric cars, the flat rate is, for example, 70 euros per month (in germany) if there is no charging option at the workplace. However, if a company-owned charging option is available, the flat rate can be reduced to 30 euros per month. For hybrid vehicles, the flat rate is 15 euros per month.
This method is practical because it requires little administrative effort and provides a simple solution for both parties. The employer can reimburse the flat rate tax-free, which is beneficial for both the company and the employee. Additionally, this regulation promotes the use of electric vehicles and contributes to the reduction of CO2 emissions.
However, it is not guaranteed that the company car driver will use this flat rate and charge their electric company car at home. There is a possibility that the employee will receive the flat rate but still prefer other charging options. To avoid this, companies could create additional incentives, such as providing wall boxes for home charging or setting up charging points at the workplace.
Accurate Manual Billing by Kilowatt Hours
A more precise method is billing for the actual kilowatt hours charged. For this, the power consumption must be accurately recorded, which can be done using a separate electricity meter or an appropriate wallbox. The company then reimburses the electricity costs as a tax-free expense reimbursement. This method has the advantage of accurately reflecting the actual costs but requires precise documentation and possibly additional technical equipment.
In this case, recording and billing are done manually. The employee notes the power consumption themselves, for example, by regularly reading an intermediate meter or the wallbox. The collected data is then submitted to the employer for reimbursement. This method requires a bit more effort and discipline in documentation but offers a flexible and cost-effective solution, especially if no technical means for automatic recording are available. With manual billing, the actual power consumption can be accurately recorded, and the costs billed accordingly.
Processing manual receipts usually generates high costs and is prone to errors, making the limited resources in fleet management inefficiently used. Therefore, regularly occurring business transactions should ideally be processed automatically.
Automatic Recording and Billing
Another option, preferred by many, is using an automatic billing model. In this case, a legally compliant wallbox with a connection to a billing backend is usually installed at the company car driver’s home by a billing provider. To charge the company car, the driver authenticates themselves using RFID, and the charging processes are automatically transmitted to the company and billed. Many billing providers restrict the selection of wallboxes that can be installed to certain models they have selected.
With Phoenix Contact ’s Charge Repay Service, you can precisely and efficiently bill the kilowatt hours charged for your company vehicles. This service enables transparent and accurate recording of charging processes, regardless of the wallbox used. This simplifies billing for both employers and employees.
Home Power: Your Own Wallbox
Your Personal Charging Station
Many employees charge their company cars at a private wallbox. This can either be provided by the company or purchased by the employee. A wallbox allows for fast and safe charging and can be equipped with a MID-certified meter to measure the exact power consumption. A wallbox also offers the advantage of often charging faster than a conventional socket and providing additional safety features.
To ensure that the electricity costs for charging company cars are correctly billed between the company and employees, the wallbox used must meet certain requirements.
Legal Compliance in Germany: An important aspect of charging company cars at home is the legal compliance of the wallbox used. This ensures that the measured power quantities are accurately and tamper-proof recorded. Wallboxes that are legally compliant have calibrated meters that meet the requirements of the German Measurement and Calibration Act (MessEG) and the Measurement and Calibration Ordinance (MessEV). Application regulations are provided by the REA 6-A document of the AGME (Working Group on Measurement and Calibration). A consortium of the 16 German calibration authorities that define the application areas of electromobility and the applicable standards. Therefore, the company and employees should ensure that the installed wallbox meets these requirements to ensure correct and legally compliant billing.
In our blog post “Calibration law in the charge@home sector ” we have outlined all the important information on this topic.
RFID-Based Access Protection: To ensure that only authorized persons can use the wallbox, RFID-based access protection is essential. This technology allows the wallbox to be released only for registered users. The RFID chip or RFID card is simply held to the wallbox, and the charging process starts only if the card is authorized. This prevents unauthorized use and ensures that the billing of electricity costs is accurate. Especially in shared parking lots or freely accessible driveways, RFID access protection offers a reliable solution to accurately control and document power consumption. Further information on the criteria for selecting the right wallbox can be found in our Wallbox Guide.
Guide to choosing a Wallbox: Your comprehensive Guide!
Our guide provides you with important insights into the details you should consider before purchasing a wallbox. Learn about the key criteria to make the right choice for your home and company car.
REQUEST GUIDE
Easy Charging on the Go
Additionally, employers can provide charging cards that allow employees to charge at public charging stations. This is particularly convenient for on-the-go and offers flexibility when there is no home charging option available. Public charging stations are often found in strategically convenient locations such as shopping centers, parking garages, or highway rest stops.
Who Pays for the Wallbox for the Company Car?
In practice, two options for purchasing the wallbox have proven successful:
- Purchase by Employees: The company lets the employees buy the wallbox themselves, thereby avoiding liability risks for the company. It is important to work with a mobility service provider that offers high flexibility in wallbox models so that the employee can choose freely. The incurred costs can be reimbursed through the travel expense report, or the company pays a flat-rate subsidy for the wallbox.
- Company Purchase and Rental: The company takes over the purchase and installation of the wallbox and then rents it to the employee. In this case, the company can set better specifications for the wallbox model but has additional administrative efforts due to the rental of the hardware. It should be noted that this could lead to lower acceptance among company car drivers if the employer prescribes a specific wallbox model.
Tax Benefits and Subsidies in Germany: What You Should Know
Utilize Tax Benefits
Charging a company car at home can offer tax benefits. The benefits granted by the employer for the temporary private use of a company-provided charging facility for electric or hybrid electric vehicles are tax-free according to § 3 No. 46 EStG. Additionally, companies can claim the costs for the charging electricity as business expenses, providing additional tax relief.
In our blog post, you can read everything you need to know about the tax benefits of electric company cars in Germany .
Utilize Subsidies
There are various subsidy programs for the purchase of wallboxes, which can vary depending on the federal state. These subsidies can significantly reduce the costs of installation. For example, the KfW Bank in Germany has offered subsidies for private charging stations that could amount to up to 900 euros per charging point. The availability of these subsidies is usually quickly exhausted, so it is worth regularly checking for currently available subsidies.
In our blog post, you can read everything else about subsidies for wallboxes and photovoltaic systems in Germany.
Download our charge@home Guide now!
Our guide highlights the requirements for a home charging solution and explains what is needed to use it for legally compliant billing of company cars. Learn more about the installation of wallboxes, legal frameworks, and efficient billing solutions for home charging.
REQUEST GUIDE
More to Know
- New Regulation for Company Cars: Since January 1, 2024, there has been an additional tax benefit for the provision of an electric company car. The taxable benefit is 0.25% of the gross list price, up to a list price of 70,000 EUR. The increase of the gross list price to 95,000 EUR for the 0.25% rule in the taxation of electric company cars is planned but not yet finalized. The Bundestag still needs to approve the proposal. If this happens, the new regulation will come into effect retroactively from July 1, 2024.
- Tax-Free Charging Options at the Employer: The free or discounted charging of electric or hybrid vehicles at the employer’s premises is tax-free if the company provides the service in addition to the salary owed anyway. This also applies to temporary workers. This regulation offers an attractive way to promote the use of electric vehicles while also taking advantage of tax benefits.
- Flat Rates for Self-Employed: Self-employed individuals who charge their electric car or plug-in hybrid vehicle at home at a private wallbox can claim the same flat rates as employees for charging when billing the tax office. This simplifies billing and offers an easy way to claim the costs of charging the vehicle for tax purposes.
Charge Repay Service: The Smart Solution for Company Car Drivers
The Charge Repay Service offers a convenient and efficient solution for charging and billing company cars at home. Here are some of the benefits:
- Automated Billing: The Charge Repay Service records billing-relevant data from home wallboxes and enables kilowatt-hour accurate billing of home charging processes for the electric company car. This saves time and reduces administrative effort for both employers and employees.
- Easy Integration: Regardless of the wallbox used, legally compliant billing is possible. Existing systems do not need to be replaced but can be easily integrated. This offers flexibility and allows seamless integration into existing infrastructures.
- Certified Installation Service: The service works nationwide with certified electrical installation specialists and guarantees a safe, compliant, and timely installation of the hardware. This ensures that all technical and legal requirements are met and the installation runs smoothly.
- Data Protection and Flexibility: The sensitive data of company car drivers remain protected, and payments can be made directly through the Charge Repay Service. This ensures high data security while offering flexibility in billing.
The service is a great solution for the user. I don’t have to worry about anything anymore. Now I plug the charging plug into my car, a window opens in the web app, I say whether it is a business or private charging process, and that’s it. It’s all very simple.
Conclusion: Efficient Charging and Billing
Charging and billing company cars at home can be simple and efficient when the right methods and technologies are used. Whether through flat-rate payments, manual billing, or precise recording of charged kilowatt-hours, there is a suitable solution for every company and employee. The Charge Repay Service from Phoenix Contact, in particular, offers a flexible and user-friendly way to automate and simplify billing, regardless of the wallbox used. With the right technical prerequisites and a clear billing strategy, companies and employees can not only promote electromobility but also benefit from tax advantages and subsidies. This makes charging company cars at home a convenient and cost-effective solution for all parties involved.
