10 September 2025
Remuneration and benefits
Electric company cars: the charging card is not taxable income; amounts charged do not reduce the fringe benefit
Italian Revenue Agency
The case arises from a company policy under which vehicles are assigned for mixed business and private use, and the company intends to extend to electric and plug-in hybrid vehicles the same card used for fuel purchases, valid also at public charging stations, with the cost charged to the company and an annual cap for private use. The company asks whether charging paid by the employer generates taxable income for the employee and whether any amounts withheld from the employee for private mileage exceeding the limit can reduce the value of the fringe benefit.
The Revenue Agency clarifies that, for vehicles granted for mixed use, taxation is calculated on a flat-rate basis using ACI values; these values also include “fuel” and therefore, for electric and plug-in vehicles, the cost of electricity. As a result, charging carried out using a company card—within the limits set by the policy—does not constitute taxable income for the employee.
By contrast, amounts paid by the employee to the company for private use of the vehicle (for example, beyond the annual limit set) cannot be deducted from the ACI flat-rate value of the vehicle and therefore do not reduce the taxable fringe benefit. These amounts must be withheld from the employee’s net salary, without affecting the conventional value of the benefit.
