If we want to integrate eMobility into our everyday lives in the long term, a comprehensive charging infrastructure must be created. Some employers have already recognised this fact and offer their employees the option of charging electric vehicles at the company premises. But how is this electricity actually charged? We clarify the most important questions.

What is the initial situation?

Until 2030, employees can charge their private electric or hybrid vehicles tax-free at company premises. Such charging is a non-cash benefit and is treated the same as refuelling a company car. In addition, the company can also provide the employee with a charging station for home use. The prerequisite for this in each case is that the benefits are provided in addition to the remuneration already owed. You can read more about this below.

Which cars are eligible?

Eligible vehicles include electric cars that are powered exclusively by an electric motor as well as hybrid vehicles that can be both fuelled and charged. The latter, however, only applies if they can be charged externally with a plug.

When is charging tax-free?

Whenever employees charge their electric vehicle at a permanently installed facility at the company premises, charging is tax-free. This also applies to private use of the charging station in the meantime. If the employer reimburses its employees for their private electricity costs for a company car, this is treated as a tax-free reimbursement of expenses. However, if the vehicle is a private vehicle, the reimbursement of their private electricity costs constitutes taxable remuneration.

Flat-rate taxation of the monetary benefit

If an employer provides the charging station to its employees, there is flat-rate taxation of the monetary benefit. The lump-sum wage tax is currently 25% and can be applied to the monetary value benefit if employees receive the charging station in addition to the wages owed anyway or at a lower rate. Together with the lump sum, this also results in exemption from social security contributions.

Simplifications of the regulation

Among other things, the tax authorities also allow simplifications. Therefore, the flat-rate wage tax may be based on the employer’s expenses for purchasing the charging device. If the employee has paid the costs for the purchase him/herself, the employer may subsidise the costs or assume them completely. In this case, the imputed income can also be taxed at a flat rate.

Charging electric company cars at home

In addition to the option of charging company cars at the company premises, another option opens up: a smart charging station for employees at home. The financing is provided by the employer or the respective employees. One of the advantages of a charging station at home is that the electricity costs for the charging processes can simply be submitted to the employer and reimbursed.

You want to know more about the billing of electric company cars