A complete TCO calculation: the new standard for decision-making

The real cost of a company car goes far beyond the lease price alone. A TCO (Total Cost of Ownership) includes:

• Operational lease costs: depreciation, interest, taxes, insurance, roadside assistance, maintenance & (winter) tyres, replacement vehicle, etc.
• Energy costs: fuel and/or electricity consumption (at home, at the office and in public charging)
• Costs for home charging infrastructure
• Non-recoverable VAT
• Tax on disallowed expenses (on lease costs, energy costs and benefit in kind), linked to the vehicle’s deductibility percentage
• CO₂ contribution
• Other operational costs
• …

Fiscal changes that determine your TCO (2026–2031)

We are already well into a major tax reform. These are the key milestones that lie ahead under the Van Peteghem law.
The phase-out scheme for new orders of non-zero-emission vehicles ended on 31 December 2025. From that date onwards, every new order falls under the new legislation. 

2026

• 100% tax deductibility remains only for zero-emission vehicles (EVs)
• 0% tax deductibility for newly ordered non-zero-emission vehicles (including PHEVs!)
• CO₂ solidarity contribution multiplied by a factor of 4

2027 – 2031

• Deductibility of newly ordered EVs gradually decreases
• From 2031: stable deductibility of 67.5%

TCO vs. TCO²: why only TCO² really tells the full story

Many fleet managers believe they are calculating a complete TCO. In reality, most are still working with TCO 1 and that only tells half the story. Making strategic decisions today based on TCO 1 means overlooking essential fiscal costs and risking the wrong choices.

TCO 1: a good starting point, but not a full TCO

TCO 1 is based on operational leasing and already includes many costs: lease price, maintenance, tyres, taxes, non-recoverable VAT, energy costs and even charging infrastructure. Valuable information — but not a complete TCO.

Why not? Because one of the largest cost items for companies is missing: tax on disallowed expenses.

TCO²: the most complete method

TCO² includes everything from TCO 1, and adds the tax impact of disallowed expenses on lease costs and on the benefit in kind.

This fiscal impact only becomes visible at the end of the financial year, which is why it often stays “under the radar.” Yet it is decisive for the total cost of each vehicle, especially when comparing zero-emission and non-zero-emission vehicles. Moreover, TCO² is also the starting point for determining the federal mobility budget.

That is precisely why TCO² is the most complete and relevant TCO.

In TCO², the story often shifts completely.

Thanks to higher tax deductibility, lower CO₂ charges and more efficient consumption, electrified vehicles usually become the most cost-efficient choice in TCO² even though the purchase price and base lease price are often higher at first glance.

How TraXall translates complexity into clear cost insight

TraXall supports you with:

• Correct and complete TCO calculations per vehicle, taking into account vehicle-specific consumption
• TCO reporting and cost projections up to 2031
• Optimisation of your charging policy
• Adjustments to your car policy
• Advice on mobility budgets and EV strategy