As a general rule, the following applies: Charging the batteries of electric or hybrid electric vehicles at the employer’s place of business, whether free of charge or at a reduced rate, is tax-exempt if the employer provides this benefit in addition to the wages already owed (Section 46 of the Income Tax Act (EStG)). This tax exemption applies at least through the end of 2030.
Tax-free charging current at the employer: It does not matter whether it is a private vehicle or a company car. This means that the charging of a private vehicle is tax-free and is not recorded as wages. The private use of a company car provided by the employer is regularly recorded in accordance with the 0.5% or 0.25% regulation, so that the charging current is thereby compensated. If the logbook method is used, the tax-free electricity costs are not included in the total costs.
Scope of the tax exemption: The tax exemption is not limited to a maximum amount or to a specific number of eligible vehicles. The exemption applies to charging at any fixed facility operated by the employer or a company affiliated with the employer. However, if the employer directly bears the electricity costs for charging employees’ vehicles, the benefit derived from the charging electricity provided free of charge or at a reduced rate is tax-exempt even if the charging device used is located at a fixed business facility of the employer from a third party is operated solely for the purposes of the employer company or the affiliated company. Attention: The free provision of electricity to employees for charging a private electric or hybrid electric vehicle is assessed as a taxable transfer of value for VAT purposes.
Provision of a charging device
Additional benefits provided by the employer for the temporary use of a company-provided charging station for electric vehicles or hybrid electric vehicles for personal use are also exempt from income tax (Section 3 No. 46 of the German Income Tax Act (EStG)). This refers to so-called wallboxes for fast charging of electric vehicles. A charging station refers to the entire charging infrastructure, including accessories, as well as the services provided in this context. This includes, for example, the assembly, installation, and commissioning of the charging station, its maintenance and operation, as well as necessary preparatory work such as laying a high-voltage cable. However, the tax exemption applies only when a charging device is provided that remains the property of the employer. The employer may tax monetary benefits arising from the transfer of ownership of a charging device, as well as subsidies toward the employee’s expenses for the purchase and use of a charging device, at a flat rate of 25% (Section 40(2), first sentence, No. 6 of the Income Tax Act (EStG)). Here, too, the prerequisite is that the benefits are provided in addition to the wages already owed. The employer’s expenses for the purchase of the charging device (including value-added tax) may be used as the tax base.
The following has been revised: If a company-owned electric or hybrid electric vehicle is charged at a home charging station belonging to the taxpayer’s residence, the business portion of the total electricity consumed through the use of the home charging station can generally be verified using a separate stationary or mobile (such as a wallbox or an on-board meter). This meter does not need to comply with calibration regulations. To document the business portion of the total electricity consumption, records must be kept for a a continuous three-month period considered sufficient, unless this proportion can be readily determined (e.g., based on the vehicle’s own specific measurement and allocation of the amount of electricity). The amount of electricity must be multiplied by the individual electricity rate. In addition to the purchase price for the kilowatt-hours of electricity consumed, a pro-rata basic fee must also be taken into account; for the sake of simplicity, electricity fed into the grid from a private photovoltaic system should not be considered. In the case of a contract with a dynamic electricity rate, there are no concerns about using the average monthly electricity costs per kWh, including the prorated base rate, as the basis for calculation.
For the sake of simplicity, one can the determination of the portion attributable to business operations In all cases (including those involving dynamic electricity rates and the use of a private photovoltaic system), the otherwise private electricity costs are based on the total electricity price for private households published semiannually by the Federal Statistical Office (Statistics Code 61243-0001, average prices including taxes, levies, and surcharges) shall be used as the basis for the otherwise private electricity costs in all cases. For the entire fiscal year, the total average electricity price—including taxes, levies, and surcharges (value based on an annual consumption of 5,000 kWh through just under 15,000 kWh) (flat-rate electricity charge). This total average electricity price must be rounded down to the nearest whole cent and then multiplied by the verified amount of electricity consumed. The option to choose between using actual electricity costs or the flat-rate electricity charge must be applied consistently for the entire fiscal year (annual flat rate). The flat-rate electricity charge covers all of the taxpayer’s electricity costs arising from the use of a home charging station.