A long-standing dispute in Poland regarding the classification of electric vehicle charging for VAT purposes has been resolved, with the Court of Justice of the European Union (CJEU) ruling that it should be considered a supply of goods.
The ruling comes after the Polish Supreme Administrative Court sought a preliminary ruling from the CJEU in February 2022, following conflicting positions taken by tax authorities and administrative courts.
The CJEU determined that the transfer of electricity constitutes the central and predominant element of this single complex supply, which also encompasses access to recharging devices, the provision of electricity, necessary technical support for users and the provision of IT applications.
As a result, this complex supply is categorised as a 'supply of goods' in accordance with Article 14(1) of Directive 2006/112.
The ruling has implications for operators of charging stations, who may need to review their settlements and make adjustments in their financial arrangements. It could also have an impact on other entities within the chain, including intermediaries, leasing companies and electric vehicle users.
Furthermore, considering the charging of electric vehicles as a supply of energy may lead to excise and regulatory ramifications, such as the requirement to obtain a licence related to the sale of electricity.
Conclusion:
The CJEU ruling provides much-needed clarity on the VAT classification of electric vehicle charging in Poland. It is likely to have a significant impact on the electromobility industry in the country, and could also have implications for other EU member states.
