Employees who are allowed to use their electric company car privately often charge their vehicle at home. It’s convenient, and usually cheaper than public charging. Employers can easily reimburse home charging costs for company cars through payroll.
But what about the wallbox itself? Who pays for it depends on the agreement between employer and employee.
Below we explain the four possible cost models, the tax implications of each, and the practical steps for implementing them in payroll and car policies.
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If the employer provides or lends a wallbox for the employee’s company car, this is considered an additional non-cash benefit. Since the employee saves the cost of buying or renting their own charger, this benefit would normally be taxable. However, it remains exempt from income tax and social security contributions as long as the employee does not own the wallbox and it is only provided temporarily.
Any costs incurred during the loan period, such as maintenance or repairs, are usually covered by the employer.
Practical tip: Clearly define ownership, document the return obligation when the employee leaves, and include maintenance and fault procedures in the car policy.
If the employer pays for the wallbox and installation and gives it to the employee, it is treated as taxable income. Like with company cars, the value of the wallbox counts as a non-cash benefit.
To avoid the employee paying additional income tax, the employer can apply a flat 25% wage tax (according to § 40 (2) sentence 1 no. 6 EStG), plus solidarity surcharge and, if applicable, church tax.
In this case, the employee does not pay additional tax, and neither side pays social security contributions on the benefit.
Important: The flat-rate taxation is only permitted if the benefit is granted in addition to regular salary. Salary conversion excludes the 25% flat-rate option.
Here, the employer covers only part of the cost. The subsidy itself is not taxed, but the non-cash benefit must be declared.
Subsidies for the purchase or use of a wallbox (for example for maintenance, operation, or meter rental—but not charging electricity) can also be taxed at a flat rate of 25%, provided they are paid in addition to salary. Social security exemption applies in these cases.
If the wallbox remains company property, the employer is responsible for ongoing maintenance and repairs.
Employees can, of course, buy and install a wallbox themselves.
This option makes sense if they want to charge several vehicles (including private ones), prefer a specific model, or want additional features that an employer-provided wallbox doesn’t include.
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Get infoBefore employers decide to pay for a wallbox, several conditions need to be met. First, there should be a written agreement between employer and employee to avoid misunderstandings. This should specify who can use the charger, who covers maintenance, and how repairs or defects are handled.
Employers should also check for legal or tax-related issues that could affect reimbursement. Consulting a tax advisor is recommended to determine the best approach for the company.
Finally, technical feasibility must be confirmed. Not every location is suitable for installation. The employer should ensure the necessary electrical infrastructure is available or can be installed at reasonable cost.
In principle, any wallbox can be used to charge a company car at home. The key factor is how the electricity cost reimbursement will be handled.
For a flat-rate reimbursement, no special wallbox requirements apply. Employers can simply pay a standard monthly amount.
If a precise, kWh-based reimbursement is needed, the wallbox must have a separate electricity meter. There are three general types:
Wallboxes with full legal calibration are more expensive and not strictly necessary for reimbursement.
Ideally, each charging session can also be logged via RFID access or an app, allowing a clear separation between private and business charging. The data can then be exported or printed for documentation.
When employers cover the cost of a wallbox, it can improve both their sustainability profile and employee retention. More employees are considering electric mobility, and offering home charging support shows commitment to innovation and environmental responsibility.
It also enhances the company’s image and helps attract talent. On top of that, under certain conditions, wallbox and installation costs can be deducted as business expenses, reducing corporate tax liability.
For employees, employer support significantly reduces the cost of switching to electric mobility. Installation can be expensive, and having part or all of it covered by the employer saves money.
It also increases convenience. Employees can charge their vehicle overnight at home instead of visiting public stations, saving both time and stress. The car is fully charged and ready every morning.
For those who drive frequently for work, this is especially valuable. Public charging is generally more expensive than home charging. A private wallbox allows employees to save in the long run, particularly if they can use a low-cost or solar-based electricity tariff.
Employers have several options to handle wallbox costs for company cars—from lending devices tax-free to offering partial or full subsidies. With the right setup, both sides can benefit financially and practically, while contributing to a more sustainable mobility culture.
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