Denmark Tax Agency Clarifies VAT on Electricity Reimbursement for Employee Home Operation of Charging Stations

The Danish Customs and Tax Administration March 24 posted Tax Council Binding Answer No. SKM2026.150.SR, clarifying that compensation paid to employees for electricity used at private residences for charging company cars didn’t constitute a price reduction for VAT purposes. The taxpayer, a company, provided charging solutions to businesses, including installing, operating, and maintaining charging stations at employees’ home addresses. The company reimbursed employees for the related electricity consumption. The taxpayer sought confirmation that this compensation didn’t constitute a price reduction under the VAT Act, entitling it to receive a credit note with VAT. Upon review, the Tax Council found that: ...