Sweden Clarifies: VAT Now Applies to Electric Vehicle Charging
Swedish Electric Vehicle (EV) users face new tax rules. The Swedish Tax Court has clarified that electricity supplied to EVs is subject to Swedish Value Added Tax (VAT), as it's consumed domestically. This includes charging from third-party networks.
The Tax Court issued Advance Notice No. 15-25/I, detailing these changes. It states that VAT applies regardless of whether the charging occurs at a private residence or a public station. Even the fixed fee for accessing third-party managed charging networks is taxable, as users are either resident in Sweden or habitually reside there.
The ruling, however, does not specify the name of the company operating the EV charging station app involved in the preliminary procedure 15-25/I.
Swedish EV users should now expect to pay VAT on their electricity consumption and network access fees. The new rules aim to ensure fair taxation and align with EU VAT place of supply regulations.
