The question of whether charging electric vehicles and making the charging network available to users should be regarded as performing a service or supply of goods for VAT purposes has been subject to debate. The Court of Justice of the European Union (“CJEU”) has now provided clarity and concludes that there is a composite supply for VAT purposes. Furthermore, it considers that such supply constitutes a supply of goods, since the transfer of electricity is a characteristic and predominant element from the point of view of the average consumer. This judgement is in line with the opinion of the VAT Committee of the European Union, which also published a Working Paper (a non-binding document) in 2019 in which it discussed the VAT treatment in the electric vehicles (hereinafter: EV or EVs) value chain and also came to the view that there should be a composite supply, qualifying as the supply of goods.
Source PwC
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
Latest Posts in "European Union"
- From matchmaker to supplier: deemed supplies and platform classification under EU VAT
- European Commission Report Highlights Uneven VAT Rate Exemptions Across EU Member States
- EU Packaging Regulation Faces Legal Challenges Over Reusability, Plastic Ban, and Deposit Requirements
- European Union Adopts Peppol PINT Billing Standard for E-Invoice Interoperability
- VAT Exemption for Bitcoin Exchange Transactions Under EU Court Ruling
