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Denmark

Capital: Copenhagen
Population: 5,806,081
Total land area (km2): 43,094 km2
Passenger cars: 2,593,568
Highway (km): 1,308 km
Category Description
Registration Tax Benefits

Denmark - Registration tax benefits

"Electric vehicles (BEV) were exempt from registration tax until the end of 2015. As of 2016, BEVs were included in the same tax regime as petrol and diesel-driven cars. The resulting tax was to be gradually phased in over a 5-year period. The scheme has since 2016 been changed and delayed three times and as of 2020 the phase-in scheme will be as follows: 20% of the full tax in 2020, 65% in 2021, 90% in 2022 and 100% in 2023. Tax deductions based on energy consumption are based on a calculated (theoretical) fuel consumption equivalent value of the electrical power consumption figure indicated in the Certificate of Conformity (COC). Plug-in hybrids (PHEV) and battery electric vehicles (BEV) are, granted a (further) reduction in the calculated registration tax of up to DKK 40,000 in 2020. The registration tax cannot, however, be negative and the minimum tax can only be eliminated completely for BEVs. Further, PHEVs and BEVs are granted a reduction in the taxable value of the car for battery capacity of DKK 1.700 pr. kWh until the end of 2022. The capacity is a calculated figure based on electric consumption and electric range. All consumption figures will be based on WLTP as of 1 January 2021. Hydrogen-powered and fuel-cell electric vehicles (FCEV) are exempt from registration tax until the end of 2021."
Other Financial Benefits

Denmark - Other financial benefits

"The Danish government issued a rule exempting electric cars from parking fees for up to DKK 5 000 (EUR 670) per year (Flader, 2017). In practice, this means that other than in Copenhagen, electric car owners rarely pay for public parking. In 2020 a temporary deduction in the annual taxation of DKK 40,000 (3,333 per month) is granted for BEVs and PHEVs, but only temporarily during the period from 1 April 2020 until 31 December 2020."
Infrastructure Incentives

Denmark - Infrastructure incentives

Since 2016, Denmark offers a taks exemption for commercial charging, which in 2017 was extended to 2019, and favourable tariffs for electric buses were extended to 2024 (Government of Denmark, 2017).
Purchase Subsidies

Denmark - Purchase Subsidies

Per July 2020 there is no known purchase subsidy available.
Company Tax Benefits

Denmark - Company Tax Benefits

Per July 2020 there is no company tax benefit known.
Ownership Tax Benefits

Denmark - Ownership tax benefits

In Denmark, circulation taxes are differentiated based on fuel consumption and weight. BEVs pay the minimum amount and PHEVs pay less than an equivalent ICE car.

Procurement

Denmark - Public Procurement

Since 2013, the Danish Energy Agency has funded programmes to support municipalities and companies in the purchase of electric cars for fleets (Sørensen, 2017). Public procurement is moving quickly in Copenhagen, which aims to convert its entire bus fleet to electric vehicles by 2031.

Announced policy changes

Denmark - Announced policy changes

In response to low electric car sales in 2016-17, delay of the phase-in of the full registration tax for electric cars: it will be maintained at 20% of the full registration tax rate until 2019 (instead of 2017) or until 5 000 new registrations. Full tax to be gradually phased in: 40% in 2020, 65% in 2021, 90% in 2022, 100% in 2023.
Category Description
Registration Tax Benefits

Denmark - Registration tax benefits

"Electric vehicles (BEV) were exempt from registration tax until the end of 2015. As of 2016, BEVs were included in the same tax regime as petrol and diesel-driven cars. The resulting tax was to be gradually phased in over a 5-year period. The scheme has since 2016 been changed and delayed three times and as of 2020 the phase-in scheme will be as follows: 20% of the full tax in 2020, 65% in 2021, 90% in 2022 and 100% in 2023. Tax deductions based on energy consumption are based on a calculated (theoretical) fuel consumption equivalent value of the electrical power consumption figure indicated in the Certificate of Conformity (COC). Plug-in hybrids (PHEV) and battery electric vehicles (BEV) are, granted a (further) reduction in the calculated registration tax of up to DKK 40,000 in 2020. The registration tax cannot, however, be negative and the minimum tax can only be eliminated completely for BEVs. Further, PHEVs and BEVs are granted a reduction in the taxable value of the car for battery capacity of DKK 1.700 pr. kWh until the end of 2022. The capacity is a calculated figure based on electric consumption and electric range. All consumption figures will be based on WLTP as of 1 January 2021. Hydrogen-powered and fuel-cell electric vehicles (FCEV) are exempt from registration tax until the end of 2021."
Other Financial Benefits

Denmark - Other financial benefits

"The Danish government issued a rule exempting electric cars from parking fees for up to DKK 5 000 (EUR 670) per year (Flader, 2017). In practice, this means that other than in Copenhagen, electric car owners rarely pay for public parking. In 2020 a temporary deduction in the annual taxation of DKK 40,000 (3,333 per month) is granted for BEVs and PHEVs, but only temporarily during the period from 1 April 2020 until 31 December 2020."
Infrastructure Incentives

Denmark - Infrastructure incentives

Since 2016, Denmark offers a taks exemption for commercial charging, which in 2017 was extended to 2019, and favourable tariffs for electric buses were extended to 2024 (Government of Denmark, 2017).
Purchase Subsidies

Denmark - Purchase Subsidies

Per July 2020 there is no known purchase subsidy available.
Company Tax Benefits

Denmark - Company Tax Benefits

Per July 2020 there is no company tax benefit known.
Ownership Tax Benefits

Denmark - Ownership tax benefits

In Denmark, circulation taxes are differentiated based on fuel consumption and weight. BEVs pay the minimum amount and PHEVs pay less than an equivalent ICE car.

Procurement

Denmark - Public Procurement

Since 2013, the Danish Energy Agency has funded programmes to support municipalities and companies in the purchase of electric cars for fleets (Sørensen, 2017). Public procurement is moving quickly in Copenhagen, which aims to convert its entire bus fleet to electric vehicles by 2031.

Announced policy changes

Denmark - Announced policy changes

In response to low electric car sales in 2016-17, delay of the phase-in of the full registration tax for electric cars: it will be maintained at 20% of the full registration tax rate until 2019 (instead of 2017) or until 5 000 new registrations. Full tax to be gradually phased in: 40% in 2020, 65% in 2021, 90% in 2022, 100% in 2023.