The Court of Justice of the European Union (CJEU) has ruled that the supply of access to recharging devices and electricity to electric vehicles (EVs) constitutes a single complex supply of goods for VAT purposes. This ruling was made in Case C-282/22, Dyrektor Krajowej Informacji Skarbowej versus P. in W. The dispute in the case concerned the installation and operation of EV recharging stations accessible to the public, which would be equipped with multi-standard chargers. The price billed to users would depend on the duration of the recharging session and the standard of connector chosen. The supply provided during each recharging session could include access to recharging devices, supply of electricity to the batteries of the vehicle, and necessary technical support. P. in W. asked the tax authority to issue a tax ruling confirming that the planned activities consisted of a ‘supply of services’ within the meaning of Article 8 of the VAT Law. The tax authority considered that the supply of electricity necessary to recharge an EV had to be regarded as the principal supply, while the other services offered by P. in W. had to be regarded as ancillary. However, following an action brought by P. in W., the Regional Administrative Court annulled the tax ruling, stating that the primary intention of users of recharging stations is to use devices enabling them to recharge their vehicle quickly and efficiently. Thus, from the point of view of the user concerned, the principal supply consists of access to a recharging station and of the necessary integration of the charger with the vehicle operating system.
Source International Tax Plaza
