SDEU k zdaňování dobíjení elektromobilů

CJEU on the taxation of electric vehicle charging

In the dispute[1], the card company DCS acted as a reseller. DCS purchased electricity from the operators of the charging points, which it then sold to its customers. DCS charged its customers for (i) the electricity supplied (variable component) and (ii) a fixed fee for access to the network (used to find charging points, plan routes, contains pricing information, etc.). The fixed fee was invoiced even if no electricity was supplied in the given month. Invoicing between the charging point operator and DCS, and subsequently between DCS and its customers, was on a monthly basis.

The question was whether the previous case law of the CJEU on conventional fuel cards[2] applied and DCS was therefore only providing financing to the customer (a VAT-exempt service without right for VAT deduction). The operator of the charging points would therefore supply the electricity directly to the DCS’ customer.

According to the CJEU, the conclusions of previous case law do not apply because there is no "credit mechanism" in the present situation. On the contrary, the CJEU considers that DCS is acting in its own name on behalf of another person. The set-up in question is characterised by the features of a commission contract and it is for the referring court to determine whether the end customer or the charging point operator is the principal.

On the question whether the supply of electricity and the billing of the fixed fee should be considered as one complex or separate transactions, the CJEU is inclined to the view that they could be considered as separate transactions.

Practical implications

The CJEU's conclusions provide useful and practical guidance for setting up contractual relationships between electricity suppliers, the card companies, and their customers. They may also provide some inspiration for companies providing similar services in the context of conventional fuels.

If you have any questions, please contact the authors of the article or the EY team you are working with.

Authors:

David Kužela

Pavol Bezek

[1] CJEU decision C-60/23 Digital Charging Solutions GmbH

[2] CJEU decision C-185/01 Auto Lease Holland a C-235/18 Vega International Car Transport and Logistic