Energy tax management

Big savings with correct tax deduction

The more precise your documentation for where your energy goes is, the better you can comply with requirements and optimise your business for minimum tax.

Get full tax deductions for your “process energy”

“Process energy” stands for the energy used for production or manufacturing of a product meant for sale.

The energy used for comfort heating or cooling (in e.g. offices or stores) does as a rule not qualify as process energy, and in situations where there is more than one activity on the company premises, the allocation of process energy and comfort energy, respectively, is defined by the purpose with the temperature control.

An example of this could be supermarkets, where the energy used for cooling of freezers and coolers is not considered comfort cooling and does thus qualify for tax deductions.

Unless you can provide documentation for how much of your energy consumption is actually used for “process”, the allocation will be calculated from a range of standard rates, defined by SKAT (The Danish Tax Agency).

However, the actual process energy will in nearly all cases exceed the estimates made by SKAT, and your legitimate tax deductions be higher than the official calculations, so it is good business to take control of your energy use.

Read more about the rules for tax deduction on SKAT’s (The Danish Tax Agency) website