More and more companies are providing employees with electric cars, either as company vehicles or as part of a mobility budget such as a car subscription. This raises two practical questions. How does home charging work from a tax perspective, and which advantages can employers offer without creating tax risks?
This article explains the core tax rules for charging at the workplace and at home and gives clear recommendations for compliant, low-effort implementation.
When employees charge their private or company EVs at the workplace, the benefit is tax free and exempt from social security contributions, without any cap, as long as it is granted in addition to salary. The rule applies regardless of the vehicle type or the number of vehicles per employee and it also covers temporary workers at the hiring company. The exemption is guaranteed by law until 31 December 2030.
In practice, the exemption also applies if an external operator runs the charging points or if the employer simply covers the electricity costs, for example as a tenant in a property with shared infrastructure. One caveat remains. If electricity is provided free of charge for private vehicles, this counts as a taxable supply for VAT purposes. HR and fleet teams should align with their tax advisor on the correct handling.
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A company wallbox made available for private use can be tax free if ownership stays with the employer. Installation, accessories, and maintenance are included in this treatment. If the wallbox is transferred to the employee or subsidized, a flat tax of 25 percent applies, provided the benefit is granted in addition to salary. Both facilitations apply until the end of 2030 and are exempt from social security. Salary conversion is not permitted here.
If an employee charges a company car at home, the employer can reimburse electricity using fixed monthly amounts instead of metered proof. This keeps administration light. With a workplace charging option available, the monthly flat rate is 30 euros for a fully electric vehicle and 15 euros for a plug-in hybrid. Without a workplace option, it is 70 euros for EVs and 35 euros for plug-in hybrids.
A workplace charging option means any suitable power source on company premises or a charging card provided by the employer for use with a third-party network. These flat rates are alternatives to exact billing. If higher actual costs can be proven with a separate meter, those can be reimbursed tax free instead.
If an employee pays for electricity themselves, for example when charging a company car at home, they can offset those costs against the taxable benefit arising from private use of the vehicle. Proper documentation is required.
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Get infoIf the employee charges a privately owned EV at home and the employer reimburses the electricity, the payment counts as taxable wages. There is no tax-free reimbursement path in this scenario because the vehicle does not belong to the company.
There is welcome relief for payroll. Tax-free benefits under section 3 number 46 of the German Income Tax Act, such as workplace charging or the provision of a wallbox, do not have to be recorded in the payroll account under section 4 paragraph 2 number 4 of the Payroll Reporting Ordinance. This reduces administrative workload for HR and payroll teams.
If you want to tune your company’s mobility strategy for EVs or have specific questions about setup and payroll integration, our NAVIT experts are happy to help.
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