Employer-provided benefit: Tax-exempt electric vehicle recharging
In Germany, employers providing free or discounted electric vehicle (EV) charging to employees can benefit from a tax exemption on the value of this charging as a non-cash benefit to the employee. This exemption, in place since 2017 and extended through 2030, means that the free charging at the workplace is not considered taxable income for employees.
This tax exemption provides a significant incentive for companies to install EV charging infrastructure for staff use. The benefit does not incur any additional income tax or social security contributions on the part of the employer, making it a tax-neutral initiative that promotes electric mobility.
It's essential to note that while free workplace charging is tax-exempt, financial assistance from a company for charging a private electric or hybrid vehicle at home is considered taxable income and must be taxed accordingly.
The Lohnsteuerhilfeverein Vereinigte Lohnsteuerhilfe e.V. (VLH) provides detailed information about the tax-free charging benefit. This benefit applies to both company vehicles and private vehicles. The tax-free benefit covers charging at fixed company facilities and those of affiliated companies.
Many companies in Germany have charging stations on their premises for employees to use, either for free or at a reduced rate. In fact, as of January 1, 2025, there were approximately 1.65 million registered electric passenger cars in Germany, with over 47,000 electric vehicles and nearly 26,000 plug-in hybrids newly registered in June 2025 alone. This represents a more than fivefold increase in the number of electric cars in Germany over the past four years.
Employers can also provide tax-exempt charging for private electric and hybrid vehicles when using charging devices of external providers on company property, provided they cover the costs directly.
The Germany Atlas, an information platform of several federal ministries, serves as a valuable resource for those seeking more information on e-mobility and workplace charging infrastructure in Germany.
This tax-free benefit aligns with Germany's ongoing governmental support for e-mobility and workplace charging infrastructure. Search results did not specify VAT treatment for the employer's provision of charging but noted VAT-related updates in other countries (such as Hungary) that do not affect Germany directly.
In summary, free workplace charging for employees is tax-exempt in Germany through 2030. This exemption removes taxable benefit concerns for employees, and the employer can provide discounted or free charging without additional tax burden. Reduced tax rates on company EV cars also exist but are separate from charging benefits.
The tax exemption on free or discounted electric vehicle (EV) charging for employees at their workplace serves as a significant incentive for businesses to invest in EV charging infrastructure, contributing to the promotion of electric mobility in Germany's corporate sector. Technology, such as charging devices from external providers, can also be used on company property, allowing employers to provide tax-exempt charging for private electric and hybrid vehicles.
