Tax relief for bicycle leasing only, not for e-scooters

‍It is impossible to imagine the streets without electric bicycles. More and more people are opting for the extra power while cycling. However, a new trend is on the rise: the electric scooter! We have also noticed this growing popularity at o2o and we are being increasingly asked if we will include electric scooters in our lease offerings.

But is it actually possible to lease an electric scooter? And would that work like bicycle leasing? And would you then also enjoy tax relief ?

There is still much uncertainty about the electric scooter. Fortunately, our experts know the situation in detail. We'll provide you with all the information in this blog.

What the tax system says about leasing e-scooters

Electric scooters are increasingly popular, but what about the regulations surrounding leasing? Can you lease an e-scooter like a bicycle and enjoy the same tax relief?

Unfortunately, the answer is no. In Belgium, unlike with bicycle leasing, no tax relief applies when you lease an electric scooter through your employer.

The tax relief with bicycle leasing often makes your lease bicycle up to 40% cheaper than a private purchase. This undoubtedly contributes to the success of bicycle leasing in Belgium. The absence of these benefits makes leasing electric scooters much less appealing. In fact, you would pay as much for such an electric scooter through leasing as through a private purchase.

Why is this the case? Because making your own efforts to exercise is an important requirement to qualify for the tax relief of bicycle leasing. This is not the case with a scooter, so the tax relief does not apply.

Taxation is an important element in the electric scooter story. There are still no parafiscal benefits that incentivise flexible pay via motorised locomotion devices (such as scooters). Specifically, the Benefit in Kind (BiK) is not yet exempt from taxes or social security contributions. - Guy Crab, representative of Traxio Velo, which represents the interests of the Belgian bicycle sector.

Practical advantages of bicycles over e-scooters

Compared to an e-scooter, a bicycle also has benefits in terms of practicality! On your bicycle, you can easily carry your gear thanks to convenient panniers or carriers.

Plus, you secure your bicycle with peace of mind with a solid lock. And don't forget those long distances: with a bicycle, especially an electric one, you can easily travel much further than with any e-scooter! If you are interested in discovering all the benefits of leasing a bicycle, make sure to read our blog 'The six benefits of bicycle leasing for employees'.

Why electric scooters are not (yet) in o2o's leasing scheme

Since electric scooters offer no tax relief, it makes little sense for employers to offer them. This makes it uninteresting both for us and for you as an employee to include them in the leasing scheme.

So here's a little hint to policymakers to make the use of electric scooters more fiscally attractive. 😉 As e-scooters are a useful complement to other modes of transport many people combine the scooter with the train or car: park at the edge of the city and travel the last few kilometres with an e-scooter that fits neatly into the boot of the car. A smart solution and a valuable piece of the puzzle in the mobility of the future!

Unclear legislation lags behind

E-scooters are rapidly growing in popularity, especially in cities with shared mobility schemes. But on top of the lack of a tax benefit, unclear legislation also means that o2o does not (yet) offer scooters. Unclear regulations concerning speed and insurance make the use of e-scooter complex.

Although the official speed limit for e-scooters has been increased to 25 km/h since 31 May 2019, many models can travel faster. This creates confusion and potential risks, since the legislation has not been updated to reflect current offerings. Therefore, drivers need to be extra vigilant and take responsibility themselves.

The insurance requirement also creates ambiguity. As with e-bikes, third-party liability insurance (civil liability) is no longer required for e-scooters.

As long as electric scooters do not offer tax benefits and create ambiguity and safety risks, you will not find them in o2o's leasing schemes.