[:uk]Judgment of the Court (Fifth Chamber) of 17 October 2024.Skatteverket v Digital Charging Solutions GmbH.Reference for a preliminary ruling – Taxation – Common system of value added tax (VAT) – Directive 2006/112/EC – Articles 14 and 15 – Electric vehicle charging – Charging using devices provided by a company and allowing access to a network of charging points operated by different operators – Classification of the transaction for VAT purposes – ‘Supply of goods’ – Transfer made under commission contracts.Case C-60/23.[:]

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EU Court Judgment on VAT Classification for Electric Vehicle Charging

Background

The Court of Justice of the European Union (CJEU) addressed a preliminary ruling request concerning the interpretation of Articles 14 and 15 of Council Directive 2006/112/EC on the common system of value added tax (VAT). The case involved Digital Charging Solutions GmbH and the Swedish Tax Agency (Skatteverket), focusing on the VAT classification of electric vehicle (EV) charging services.

Key Legal Provisions

Article 14 of Directive 2006/112/EC

Defines “supply of goods” as the transfer of the right to dispose of tangible property as owner. It includes provisions for transactions made under commission contracts, where commission is payable on purchase or sale.

Article 15(1) of Directive 2006/112/EC

Specifies that electricity, gas, heat, cooling energy, and similar commodities shall be treated as tangible property.

Judgment Findings

1. Supply of Electricity as Supply of Goods

The Court interpreted Article 14(1) in conjunction with Article 15(1), determining that the supply of electricity for charging an electric vehicle at a public charging point constitutes a “supply of goods.” This classification is based on the definition that transferring electricity empowers the user to dispose of it as if they were the owner, aligning with the treatment of electricity as tangible property.

2. Classification of Transactions Involving Intermediaries

The Court examined whether transactions involving an intermediary company, such as Digital Charging Solutions, should be treated as a single supply or multiple supplies for VAT purposes. The key considerations included:

• Commission Contracts: Digital Charging Solutions acts as a commission agent, facilitating access to the charging network while not independently purchasing electricity.
• Economic Reality: Users pay a fixed fee for network access and services irrespective of electricity usage, indicating that the services are distinct from the supply of electricity.

Conclusively, the Court ruled that such transactions involve two separate supplies:

1. The operator of the charging network supplies electricity to the intermediary company.
2. The intermediary company supplies electricity to the end-user.

This dual supply structure aligns with Article 14(2)(c) of the Directive, which pertains to supply of goods under commission contracts, ensuring both stages of supply are recognized for VAT purposes.

Final Rulings

1. Article 14(1) and Article 15(1) Interpretation: The supply of electricity for charging an electric vehicle at a public charging point is classified as a “supply of goods.”
2. Article 14 Interpretation with Intermediaries: Charging an electric vehicle through a network accessed via a subscription with an intermediary company constitutes two separate supplies:
   • From the charging network operator to the intermediary company.
   • From the intermediary company to the end-user.

   This holds even if the end-user determines the quantity, timing, and location of the electricity usage.

Implications

This judgment clarifies the VAT treatment of electric vehicle charging services, particularly in scenarios involving intermediary companies. It ensures that both the supply from the network operator to the intermediary and from the intermediary to the user are subject to VAT, maintaining consistency within the EU’s VAT framework.[:]