The government and its support parties Alternativet and Enhedslisten agreed a green partial deal on Saturday that makes it easier to replace oil and gas boilers, financed in part by raising the VAT refund threshold for tourists from outside the EU from 300 to 1,200 kroner.
Tourists from non-EU countries and biogas production are among those paying for the deal, Kristeligt Dagblad reports, citing Ritzau. The agreement is a green partial deal between the government, Alternativet and Enhedslisten. One of its main aims is to make it easier for households to switch away from oil and gas boilers.
Business organizations Dansk Industri and Dansk Erhverv are positive about the deal itself. Both criticized the financing in separate press releases. Per Ulrich Bang, deputy director at Dansk Erhverv, it is regrettable that good green initiatives are funded with measures that can weaken the competitiveness of Danish retail.
The parties want to raise the threshold for VAT refunds to tourists resident outside the EU from 300 to 1,200 kroner. The limit is already 1,200 kroner for tourists living in Norway and on the Åland Islands. Bang said Dansk Erhverv opposes the change, warning that it risks costing both turnover and tourism income.
Billions for green heating and a subsidy for electric cars
According to Avisen Danmark, finance minister Peter Hummelgaard and climate, energy and supply minister Samira Nawa were set to present the deal on Saturday with representatives of the party partners. Limfjord Update reports that the deal sets aside 450 million kroner for an electric-car subsidy scheme for 2028 to 2030. The same outlet puts green heating support at just over 2.6 billion kroner through 2035, aimed at low-income households.
TV2 ØST states the heating subsidies total just under 3 billion kroner. The money is mainly for homeowners with low incomes and low property valuations, the outlet reports. Economy and interior minister Pia Olsen Dyhr commented on the deal in a press release from SF, according to TV2 ØST.
The parties also agreed to stop new installations of oil and gas boilers as soon as possible. That part requires dialogue with the EU before it can be finally adopted, according to a press release from Danmarks Naturfredningsforening distributed by Ritzau. Dansk Fjernvarme called the deal a step toward phasing out gas heating, but said a full stop where district heating is already planned is missing.
As stated in the government’s own release via Ritzau, the deal is a partial agreement to the state finance bill. Nawa said the purpose is to give a financial helping hand to everyone who wants the green transition but cannot afford it, as reported by Limfjord Update.
What the heating money and VAT change mean for foreign residents
Momsgodtgørelse, or tax-free shopping, lets travelers living outside the EU reclaim Danish VAT on goods they take home. The rule follows residence, not nationality, so people registered as living in Denmark are not covered, whatever passport they hold. The separate part of the deal concerns heating, where oil and gas boilers are still used in homes outside district heating areas.
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For internationals who own a house with an oil or gas boiler, the reported subsidies are targeted at homeowners with low incomes and low property valuations, per TV2 ØST. Tenants do not normally decide what heating source a building uses, and the reporting does not describe any measure aimed directly at renters. Visiting family or friends from outside the EU would need to spend at least 1,200 kroner to claim a VAT refund once the change applies.
The detailed rules, application procedures and start dates for the heating and electric-car schemes are not set out in the current reporting. The stop on new oil and gas boiler installations still depends on dialogue with the EU, according to Danmarks Naturfredningsforening. The full agreement text is published on the Finance Ministry’s website, according to the government’s press release.
