As the world transitions towards eco-friendly and sustainable practices, EVs have taken center stage. To support this green revolution, the Netherlands has introduced incentives to boost the development of EV charging infrastructure. Among these incentives, the Environmental Investment Allowance (milieu-investeringsaftrek or MIA) and the Random Depreciation of Environmental Investments Scheme (Willekeurige afschrijving voor milieu-investeringen or VAMIL) stand out as valuable tools for companies investing in EV charging stations.
MIA: Energizing the EV Charging Revolution
MIA, overseen by the Netherlands Enterprise Agency (RVO), offers a unique advantage to companies willing to invest in EV charging infrastructure. This incentive allows businesses to deduct a percentage of their investment costs from their taxable profits. The deduction encompasses various costs, including purchase expenses, production costs, modification costs, and even environmental consultancy for small and medium-sized enterprises (SMEs). This tax benefit can be carried forward or backward if your project doesn’t immediately generate profits.
Unlocking the deduction percentage
The precise deduction percentage, which can range from 27% to 45%, hinges on the specific EV charging infrastructure asset you’re investing in. To determine the applicable rate, consult the Environment list tool (Milieulijst).
Navigating eligibility
Before tapping into MIA, ensure that your company meets these key criteria:
- Your business is registered in the Netherlands, Aruba, Curaçao, St. Maarten, or specific Dutch municipalities, such as Bonaire, St Eustatius, or Saba, and is subject to Dutch income or corporation tax.
- Your investment aligns with an asset listed on the Environment List (Milieulijst) and complies with the specified requirements.
- The asset has not been used previously, and your annual investment amounts to at least €2,500.
- Simultaneous applications for the Energy Investment Allowance (EIA) and MIA are not allowed, but you can combine MIA with the Random Depreciation of Environmental Investments Scheme (VAMIL).
- You must report the asset purchase within three months of acquisition.
State aid awareness
It’s crucial to understand that MIA is categorized as state aid. Consequently, you must ensure that the total state aid your business receives remains within the prescribed limits. Detailed information about these conditions can be found on the official RVO website (in Dutch).
VAMIL: A Boost for EV Charging Ventures
VAMIL, another initiative administered by the Netherlands Enterprise Agency, offers a flexible approach for businesses investing in EV charging infrastructure. This scheme enables companies to write off 75% of their investment when it suits their financial strategy, reducing taxable income accordingly.
Assessing VAMIL eligibility
To embrace VAMIL, your company must meet these requirements:
- Registration in the Netherlands, Aruba, Curaçao, St. Maarten, or the specific Dutch municipalities subject to Dutch tax regulations.
- Investment in an EV charging asset listed on the Environment List (Milieulijst, in Dutch). Assets with codes beginning with A, B, C, or F qualify for random depreciation.
- The asset must not have been used before, and your annual investment should total at least €2,500.
Embrace the EV future with MIA and VAMIL
To leverage MIA or VAMIL for your EV charging infrastructure venture, notify the Netherlands Enterprise Agency within three months of purchasing the assets. You can also declare these investments in your tax return.
These incentives from the Netherlands government are not merely tax breaks; they are a significant step towards a more sustainable future. By supporting businesses in expanding EV charging infrastructure, MIA and VAMIL contribute to a greener world. Discover more about these opportunities on the RVO’s official MIA page and VAMIL page.
Join hands with the Netherlands on the journey to an electrified, sustainable future, and become a pivotal player in shaping the EV landscape. Embrace MIA and VAMIL, and let’s drive change together!
