Charging e-vehicles: VAT consequences mobility and infrastructure operators
Charging e-vehicles involves several mobility and infrastructure operators, services and even the supply of goods. For VAT purposes it is of importance to qualify all transactions. In that respect France raised questions to the EU VAT Committee.
Charging e-vehicles involves infrastructure and mobility operators. Both are involved in supplying a set of elements relating to the charging. When determining the VAT consequences France reviewed the business model and came to the conclusion that discussion could arise about the nature of the supplies and the transactional links. The outcome thereof can have different consequences on the place of taxation as well as the person who is due the VAT. Therefore France referred to the EU VAT Committee the question about the correct VAT treatment.
France identified 3 actors: the charge point operator (CPO), the e-mobility service provider (eMSP) and the customer. Besides charging e-vehicles the CPO also provides information, parking and other services relating to charging e-vehicles. The eMSP on its turn is in its own name and on its own behalf contractually bound to its customers to provide the same.
Based on the facts France and the Commission Services take the view that the CPO has to be regarded to make one supply being the supply of electricity. France takes the view that the supply is made to the eMSP and subsequently by the eMSP to the customer. The supply to the customer would then be VAT taxed in the country were the customer physically charges the e-vehicle. The Commission Services however, take the initial view, that the supply of electricity by the CPO is performed directly to the customer and that the eMSP is only providing an electronic service to the customer. The supply of electricity also in this view is taxed there where the charging takes place. The service of the eMSP would be taxable in the country where the customer resides.
It is now up to the EU VAT Committee to see if EU guidelines could be provided. This discussion will certainly continue.
More information needed? Please do not hesitate to contact your regular Loyens & Loeff advisor or Patrick Vettenburg.
This article was sent as Tax Flash on August 5, 2019. Subscribe here to regular news updates
Patrick VettenburgSenior associate Tax adviser
Patrick Vettenburg, tax adviser, is a member of our Indirect Tax practice Group in our Rotterdam office with a focus on corporate VAT, audits and the VAT aspects of international trade of goods and services.T: +31 10 224 66 51 M: +31 6 13 06 82 79 E: firstname.lastname@example.org