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Good news for private electric car owners: the sale of GHG quota is completely tax-free

Good news for private electric car owners: the sale of GHG quota is completely tax-free
Written by insideindyhomes

Last fall, a new word started making the rounds among electric car owners. As an abbreviation for the greenhouse gas reduction quota, GHG quota quickly became commonplace, and by now almost everyone has probably come into contact with it, because many intermediaries want them and then sell them on to mineral oil companies who are obliged to reduce them for a surcharge. After a while, the offers for this also exceeded an important tax limit – but now it seems clear that private individuals can keep the income from the sale of their electric car quota in full, regardless of the amount.

Sometimes more than 400 euros per electric car

In the beginning, as a private individual, you hardly had to worry about the issue of taxes on the GHG quota. With a little over 100 euros, the offers clearly fell below the exemption limit of 256 euros, up to which employees can earn other income tax-free. Theoretically, a sales tax obligation would have come into question, for which even higher limits apply. But this year, the offers just kept getting higher. When the 256 euros were exceeded, one of the platforms pointed out that you could take this free amount and give the rest to the company. This is often more lucrative overall than the full amount, which must also be fully taxed after the exemption limit has been exceeded.

In the meantime, more than 400 euros are sometimes offered per electric car, so this trick to avoid taxes is hardly worth it. But it is not needed at all, as the electric car rental company nextmove first reported in its YouTube news this Friday: It presented a document from the State Office for Taxes in Rhineland-Palatinate, according to which private income from the GHG quota is not considered a sales transaction valued and therefore not subject to income tax.

What is particularly interesting is that this does not only apply in one federal state: The document expressly mentions that it reflects a “nationally agreed administrative opinion”. Nextmove says it was updated this week, but there’s a version online from late March that appears to be identical in most respects. In addition to income tax, the aspect of private sales tax for GHG quotas sold is also basically ticked off: Although private electric car owners can get new money for it year after year, the business is not a sustainable activity in the sense of the sales tax law.

Income from the GHG quota is only privately tax-free

In short, no matter how high the GHG quota for a privately purchased electric car can rise – none of it seems to be taxable. However, the situation is different for vehicles in business assets, i.e. those bought for business purposes by companies or the self-employed. According to the document from Rhineland-Palatinate, quota payments for such company electric cars represent operating income and are taxable accordingly. And when it comes to sales tax, it is also said that if an entrepreneur gives up his GHG quota for a fee, that is part of his entrepreneurial activity. In addition to many free platforms and energy companies, Tesla itself is now also making its customers a GHG offer – albeit not in cash, but in supercharger electricity, and not particularly generously.

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