Denmark to End Public EV Charging Subsidies Starting July 1
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Denmark will end public subsidies for electric vehicle charging from July 1, closing a Covid-era tax break that has supported free charging stations across the country.
The move affects a specific VAT exemption introduced in 2020, which allowed municipalities and public institutions to offer free EV charging without triggering a taxable benefit for employees.
That exception will now expire, meaning drivers receiving free workplace charging will be taxed on it as a personal benefit.
Operational Consequences Across Municipalities
The change is expected to have immediate operational consequences. Several municipalities have already announced plans to remove or restrict public access to chargers on municipal property.
Cities including Copenhagen, Hvidovre, and Helsingør plan to switch their stations to paid services or reserve them exclusively for government fleet use.
Background on the VAT Exemption
The original VAT exemption was implemented to accelerate EV adoption during the pandemic and early energy transition period. In practice, though, it created uneven access to free charging—only public sector employees at workplaces with supporting infrastructure could benefit.
The government now argues the incentive is outdated, as Denmark’s EV share in new car sales regularly exceeds 35%, and public charging infrastructure has matured.
Implications for Public Sector Charging Infrastructure
Ending the exemption could reshape how municipalities approach on-site charging, with several likely to withdraw from operating stations altogether. For public sector workplaces, the main options going forward are:
- Pay for the electricity, treat it as a taxable benefit, and manage administrative overhead
- Remove public access and limit charging to fleet vehicles only
- Decommission charging infrastructure or shift ownership to private providers
Private Sector and Industry Impact
Notably, the Ministry of Taxation clarified that similar arrangements in the private sector remain taxable, emphasizing a move toward technology-neutral and employer-neutral treatment of charging benefits. The shift may also steer more charging demand into Denmark’s growing commercial charging network, where operators like Clever and E.ON already dominate market share.
While the impact on total charging capacity may be limited—municipally run stations represent a small slice of Denmark’s overall infrastructure—the move signals a policy pivot.
Denmark is tightening its approach to EV incentives and aiming to align charging subsidies with broader tax frameworks. For cities and fleet operators, this will force new procurement and access decisions.
For the industry, it’s another data point in the trend toward standardizing EV charging as a commercial utility rather than a subsidized public good.
