- Electricity bills include “general electricity system charges” (OGSE) which cover costs like renewable energy support and nuclear plant decommissioning. A recent Italian Supreme Court ruling (no. 8819/2025) clarified that these charges are not taxes, but rather contractual considerations that must be included in the taxable base for VAT purposes. This decision stemmed from a company’s request for a VAT refund, arguing that OGSE should be excluded from the taxable base due to their purported tax nature. However, the Court determined that despite their mandatory nature, OGSE are an integral part of the payment for electricity supply. This interpretation aligns with EU Directive 112/2006/EU, which states that taxes, duties, and levies (excluding VAT itself) should be included in the VAT taxable amount.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
