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Reclaim VAT on purchase of electric or hydrogen cars and for heat pump systems

If you buy an electric or hydrogen car or a heat pump system, you can reclaim value-added tax (VAT).

Reclaim VAT on purchase of electric, hydrogen and plug-in hybrid cars

If you buy an electric or hydrogen car, you can reclaim VAT. If you buy the car in 2023 or 2024, you can reclaim up to DKK 70,000, in 2025, up to DKK 52.200, in 2026, you can reclaim up to DKK 35,000, in 2027 up to DKK 17.500, provided that the car is registered at the latest 31 December 2027.

There will be no refunds in 2028 and the following years.

How to reclaim VAT
To reclaim VAT on the purchase of electric or hydrogen cars, you must complete and submit the application form "Application for VAT refund on the purchase of electric and hydrogen cars". Find it under Forms.

Reclaim VAT for purchase of heat pump systems

If you buy a heat pump system, you can reclaim the VAT on the system and on the work required to install it. Please note, you cannot reclaim VAT on the work and equipment required to connect the heat pump to the heating system inside a house or a building.

The application deadline is 31 December 2026

Requirements
To reclaim the VAT on the purchase of a heat pump system, the following requirements must be met:

  • The heat pump system must provide at least 80% of the energy required for heating and hot water in the house or building. Furthermore, the remaining energy must be based on electricity.
  • The system must be installed by a certified heat pump fitter. A ground source heating system must be installed by a certified borehole driller.
  • The expenses must take place at the latest 31 December 2025

How to reclaim VAT
To reclaim VAT on the purchase of heat pump systems, you must complete and submit the application form "Application for a VAT refund on the purchase of heat pump systems". Find it under Forms.

Send the completed form to the Environment Agency, Umhvørvisstovan, along with receipts for equipment and wages.

When the Environment Agency has approved the application, they will forward it to TAKS, which refunds the VAT.

Do you need help?
Call our customer service on 35 26 00 Monday to Thursday from 10 am to 3 pm, or e-mail taks@taks.fo. We are happy to help.