Materiality in the future mandatory
Now it is final: The current tax exemption for privately used company electric cars ends on December 31, 2026, as fixed by the amendment to the Value Added Tax Act in the Federal Law Gazette. As of January 1, 2027, employers must also provide a financial contribution for company electric vehicles if employees use the vehicle privately.
Amount of material allowance from 2027
The following monthly allowance value will apply to company electric vehicles used for private purposes in the future:
- in 2027: 0.375 % of the purchase cost, maximum EUR 180.00
- from 2028: 0.625 % of the purchase price, maximum EUR 300.00
If the average private use remains below 500 km per month or 6,000 km per calendar year, the half of the allowance value can be assumed in accordance with § 4, paragraph 2 of the Allowance Value Regulation.
Do existing agreements need to be adapted?
In principle, this is not required. The duty to account for expenses as of January 1, 2027 follows from a changed tax legal framework. Existing agreements regarding the private use of a company electric car therefore generally do not need to be adjusted. A mere reference to the previous freedom from accounting for expenses usually does not justify an expectation that employers will assume the future wage tax and social security contributions. On the other hand, the situation may be different when explicitly contractually agreed cost coverage or exemption is provided.
Which value counts for the disposal of Alt?
For the purposes of the disposal of old vehicles, the actual value of the private use option is fundamentally decisive. The tax value can serve as a guide, but it is not binding if it deviates significantly from the actual utility value. This question may be relevant, especially for electric vehicles, because the tax reference values are comparatively low. For the labour law assessment, an analogous application of the mileage reimbursement method used by the Supreme Administrative Court for vehicles with combustion engines is therefore particularly appropriate. For the monthly utility value, the following calculation logic follows:
- average monthly private kilometers x official mileage allowance
The starting point is the average monthly private mileage figure, for example based on a logbook or a realistic estimate. The official mileage fee currently amounts to EUR 0.50 per kilometer.
Do shops and charging stations remain free of charge?
Yes. The new goods-related charging obligation for corporate electric vehicles does not change the existing benefits for the free-of-charge charging of emission-free motor vehicles. The regulation in § 4c of the Goods-Related Charging Regulations remains unchanged. This also means that the provision of charging facilities for corporate electric vehicles or the corresponding reimbursement of costs remains free of charge up to EUR 2,000.00.
Conclusion
With the publication of the amended value-based allowance regulation, it has now been stipulated that as of January 1, 2027, a value-based allowance will apply for privately used company electric vehicles. Many companies must now assess how the new regulation will affect salary calculations, car fleet agreements, and labor law issues. In any case, the tax-free charging and charging facilities within the legally prescribed framework remain eligible.
Created: 01.10.2026
Source: Kraft & Kronberger specialised publications
Photo: GMB Visuals
