Sweden: Provision of electricity at charging stations supply of goods for VAT purposes

The Court of Justice of the European Union (CJEU) on October 17, 2024, held (C-60/23) that providing access to electricity at public charging points qualified as a supply of goods for value added tax (VAT) purposes.

The taxpayer, an E-mobility Service Provider (EMSP) based in Germany, provides electric vehicle users (EV users) in Sweden with access to a network of charging points. In addition to the network access, the service includes real-time information on prices and availability, and search and route planning functionalities. The company does not own the charging points but has contracts with the charge point operators (CPO) who manage these points. EV users are provided with a card and an app for authentication and are billed monthly, but separately, for electricity consumption and network access. The user is charged a fixed fee for the network services, regardless of electricity purchase.

The issue before the CJEU was whether the supply was a single supply of goods, a complex supply involving credit or other services, or two separate supplies for VAT purposes. The CJEU found based on its prior judgments and the economic realities of the arrangement that the taxpayer provided a single supply of goods.

Read an October 2024 report prepared by the KPMG member firm in Sweden