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Accounting & Finance
12. Jan 2026
StB Christian Rager / Emin Grbic

Reimbursement of electricity costs borne by the employee - Stricter proof requirements

Person lädt E-Auto und blickt dabei auf Haus im Grünen mit Solardach

Since 1.1.2026, new regulations have applied to the flat-rate reimbursement of employee electricity costs for the charging of a company car. In particular, proof of the actual amounts of charged electricity must be provided in future.

Previous rules up to 2025

Up to the end of 2025, employers were able to reimburse flat rates that were exempt from payroll tax and social security deductions, without any proof, for the electricity paid for by employees themselves when charging their electric or hybrid vehicles at home. The flat-rate amount depended on the availability of a charging facility at the workplace (e.g., per month €30 to €70 for electric vehicles, €15 to €35 for hybrid vehicles).

New from 2026 - Proof required of the amount of charged electricity …

As of 2026, proof will need to be provided of the amounts of charged electricity via a stationery or mobile electricity meter, for example, via a wallbox or a meter integrated into the vehicle. The charging current from private photovoltaic systems can likewise be included. To calculate the actual electricity costs, the amounts of charged electricity in kilowatt-hours (kWh) must be assessed at the individual electricity tariff per kWh; the proportional standing charge must also be determined. The electricity tariff that is used needs to be verified by means of appropriate supporting documents.

A new flat rate has been developed for the electricity price. For the calculation of the flat rate an estimated electricity price should be used instead of the household electricity tariff. Here, the basis for the calculation is the overall electricity price for private households for standardised annual consumption of between 5,000 kWh and 15,000 kWh, which is published semi-annually by the Federal Statistical Office, whereby for a calendar year, the value from the first half of the previous year is relevant (1st half-year 2025 at 34.36 cents).

Please note

For employees, it could be a sensible course of action to check at the end of the year which option - actual costs or the flat rate - is more economically advantageous, provided that the employer agrees. When applying the electricity price flat rate, all electricity costs incurred by the employee from the use of a domestic charging device will be deemed to have been compensated. The additional option for reimbursement of the actual costs for externally sourced charging current that are verified by means of supporting documents is still possible.

… and of the electricity price in accordance with the new Federal Ministry of Finance circular

In place of its previous circular of 29.9.2020, the Federal Ministry of Finance (Bundesministerium der Finanzen, BMF) published a new circular on 11.11.2025. This one confirmed that tax-free reimbursements of the electricity costs incurred by employees themselves for the charging of electric and hybrid company cars are possible. As part of a consumption-based approach, in future, proof of the actual amounts of charged electricity will be required, whereas average values may be drawn upon for proof of the electricity price.

Outlook

The consumption-based method, which will apply in the future, will lead to greater documentation requirements and will increase the complexity of payroll accounting.  It remains to be seen if the BMF circular will be further clarified with regard to the documentation - nevertheless, complete and comprehensible records should already be kept from the start of 2026.