Tax regulation mechanism
Updated: 04.01.2019
Author: Karl Wikberg
In Denmark, different taxes are levied on the production, processing, possession, receipt and dispatch of fossil fuels for heating purposes, for example the energy tax on mineral oil products, taxes on coal, lignite and coke or the carbon dioxide tax on certain energy products. Renewable energy sources are exempt from these taxes, as they are not classed as taxable in the specific regulations.
Eligible technologies
All renewable energy generation technologies are eligible for tax exemption.
| Aerothermal energy | Eligible |
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| Hydrothermal energy | Eligible |
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| Biomass | Eligible |
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| Biogas | Eligible |
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| Geothermal energy | Eligible |
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| Solar thermal energy | Eligible |
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Amount
The amount of tax relief is equal to the tax rate entitled persons are exempt from.
Addressees
Heating from renewable sources is exempt from these taxes. Companies producing, processing, possessing, receiving or dispatching renewable energy products are exempt from paying tax.
Procedure
Competent authority | The competent authority is the Danish Ministry of Taxation. |
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Distribution of costs
| State | The costs of the tax reliefs are borne by the state. |
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Denmark
