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
