As electric vehicles (EVs) continue to grow across the EU market, VAT treatment of EV charging services remains a developing and highly debated topic. The European Court of Justice (ECJ) recently addressed another important issue in this area in Case C-60/23 – Skatteverket v Digital Charging Solutions GmbH (DCS).
The ruling provides further clarity on how VAT applies to intermediary platforms operating EV charging networks and confirms when electricity supplies are considered to take place in multiple stages.
Background of the Case
Digital Charging Solutions GmbH (DCS), a German company, provides EV users with access to a network of public charging stations in Sweden through an app and charging card. The charging stations themselves are operated by third-party charging point operators rather than DCS directly.
Through the platform, users can:
- Access charging stations;
- View prices and availability in real time;
- Locate charging points; and
- Use route-planning functionalities.
The charging point operators invoice DCS for the charging sessions, after which DCS invoices the EV users. In addition to electricity consumption, users also pay fees related to network access and digital services.
The dispute arose because DCS argued that the arrangement involved separate supplies:
- A supply of electricity; and
- A supply of digital access services
The Swedish Tax Agency, however, considered the electricity supply to be the principal element of a single complex transaction.
Key Questions Referred to the ECJ
The Swedish Supreme Administrative Court asked the ECJ to clarify two main VAT questions:
- Does charging an EV qualify as a supply of goods under the EU VAT Directive?
- Can the electricity supply be regarded as taking place in two stages where an intermediary platform is involved?
These questions were particularly relevant because EV users themselves controlled where, when, and how much electricity was consumed.
ECJ Findings
The ECJ confirmed that electricity supplied through EV charging stations constitutes a supply of goods for VAT purposes. This follows from Article 15(1) of the EU VAT Directive, which classifies electricity as tangible property.
More importantly, the Court ruled that the supply can occur in two separate stages:
- From the charging point operator to the intermediary platform (DCS); and
- From DCS to the EV user.
According to the ECJ, the fact that EV users determine the quantity, timing, and location of charging does not prevent the intermediary from being treated as part of the supply chain.
The Court also emphasized that DCS acted in its own name and played an active economic role in the transaction structure, making it comparable to a commissionaire arrangement for VAT purposes.
Practical Impact of EV Charging VAT Rules
The ruling is highly relevant for businesses operating within the EV charging ecosystem, including:
- Charging point operators;
- Mobility service providers;
- Digital charging platforms; and
- Other intermediary service providers.
The decision confirms that intermediary platforms may themselves become suppliers for VAT purposes, even where they do not physically supply electricity. This could impact:
- VAT registration obligations;
- Cross-border VAT treatment;
- Invoicing structures; and
- Contractual arrangements between operators and platform providers.
Businesses may therefore need to reassess existing operating models and VAT compliance procedures in light of the ECJ’s interpretation.
Conclusion
With Case C-60/23, the ECJ further clarifies the VAT treatment of EV charging transactions involving intermediary platforms. The judgment confirms that EV charging constitutes a supply of goods and that intermediary providers may be treated as both recipients and suppliers within the transaction chain.
As the EV sector continues to expand across the EU, the ruling will likely play an important role in shaping future VAT compliance models and contractual structures for businesses active in the charging infrastructure market.
How We Can Help
As the EV charging sector continues to expand, businesses must navigate increasingly complex VAT rules surrounding intermediary platforms, charging services, and cross-border transactions.
Our indirect tax team can support with:
- VAT qualification assessments;
- Review of contractual and invoicing structures;
- Cross-border VAT compliance;
- Advisory on EV charging business models.
Would you like to discuss how this ECJ ruling may impact your business? Feel free to get in touch with our team.
