Managing vehicles used for business purposes has become increasingly complex. As an employer, you need to stay on top of a range of regulations—whether you offer company cars as a benefit or employees use their private vehicles for work-related travel. The green transition and the growing share of electric vehicles make it even more important to have a clear, fair, and practical policy in place. Below, we highlight a few important aspects to be aware of in order to avoid common pitfalls.
1. Taxation of company car benefits – Timing is crucial
Company car benefits are taxed in the month the vehicle is used. For example, if an employee receives a new company car on April 25th, the full benefit value must be taxed already in April. To avoid unnecessary administrative costs due to adjustments, it may be wise to implement an internal policy specifying that vehicle changes only occur at certain times of the month.
2. Different tax rules for fuel benefits and other charges
Fuel benefits are taxed in the month following their use. This means that fuel used in April is taxed in the May payroll.
Congestion charges, as well as road, bridge, and ferry tolls, are taxed two months after they are incurred. Therefore, charges from April will be taxed in the June payroll.
Because of these differing taxation rules, it is essential to have effective routines in place for compiling the relevant data in the correct period and submitting it to payroll on time.
3. Fuel benefit or mileage reimbursement – Which is better?
Managing charging and fuel costs for electric and hybrid vehicles is more complex than in the past. Previously, fuel expenses were often invoiced directly to the company, but today, these costs consist of multiple components—some covered by the employer and some by the employee. EV charging may take place at home, at the workplace, or at public charging stations (and may be combined with fuel usage in hybrid vehicles).
As a result, determining the taxable value of fuel benefits can be complicated, requiring a good understanding of which cost components should be included.
To simplify administration, it may be more practical to use mileage reimbursement for business travel. In this model, the employee covers all vehicle costs and receives a standardized reimbursement as follows:
- 25 SEK per 10 km for privately owned electric vehicles
- 9.50 SEK per 10 km for electric company cars
- 12 SEK per 10 km for fossil-fueled company cars, including hybrids
4. Home charging – How should it be handled?
Charging a company car at home is not included in the calculation of the fuel benefit and must be handled separately. Only charging at public stations, at the workplace, or fuel invoiced directly to the company is included in the fuel benefit calculation.
If the employer chooses to reimburse employees for home charging, this should be treated as a gross salary supplement. There are no specific regulations governing the amount, so the employer and employee must agree on a suitable compensation level. One practical solution is to apply a fixed monthly amount to reduce administrative effort.
5. Temporary tax exemption for workplace charging
Remember that there is a temporary tax exemption for EV charging at the workplace, currently valid until June 2026. You can read more in our previous article: Can you offer your employees EV charging at the workplace tax-free?
Get expert help for accurate compliance
The rules surrounding company car benefits and EV charging can be complex, and incorrect handling may lead to unnecessary costs and administrative challenges. Our experts can help you establish a clear, compliant, and sustainable policy for vehicle benefits and charging compensation. Get in touch with us today for professional guidance.
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