Electricity and services supplied at the electrical vehicles charging stations is the single complex supply

ECJ ruling from 20 April on case C-282/22 (Dyrektor Krajowej lnformacji Skarbowej) deals with the VAT treatment of sales of electricity and related services supplied by the electrical vehicles charging stations.

Context: A Polish company intends to install and operate public electric vehicle charging stations. Part of the charging cycle is the provision of auxiliary services such as provision of charging equipment (including integration of the charger with the vehicle’s operating system); supply of electricity, within duly adjusted parameters, to the batteries of the electric vehicle; necessary technical support for vehicle users, and the provision of a special platform, website or application whereby users may reserve a particular connector and view their transaction and payment history, and of the option to use an “e-wallet” to pay the balance due for individual recharging sessions.

Question: Whether in the case there is a supply of goods (Article 14(1) of Directive 2006/112) or a supply of services (Article 24(1)) is the question brought for a preliminary ruling before the ECJ.

Decision: ECJ establishes that Directive 2006/112 must be interpreted as meaning that a single complex supply that encompasses the mentioned supplies constitutes a ‘supply of goods’ within the meaning of Article 14(1) of that directive.

Arguments: ECJ concludes that in principle, the transfer of electricity constitutes the characteristic and predominant element of the single complex supply in the case because:

• first, the transaction consisting of the supply of electricity to the batteries of an electric vehicle constitutes a supply of goods, in so far as that transaction enables the user of the recharging station to consume, in order to propel his or her vehicle, the electricity transferred, which, under Article 15(1) of Directive 2006/112, is to be treated as tangible property;
• secondly, such a supply of electricity to the batteries of an electric vehicle requires the use of suitable recharging devices, which may include a charger which is to be integrated with the vehicle operating system. Consequently, granting access to those devices constitutes a minimal supply of services which necessarily accompanies the supply of electricity and may not, accordingly, be taken into account for the purpose of assessing the part played by the supply of services within the whole of a complex transaction which also involves that supply of electricity; and
• thirdly, the technical support, including the IT applications, which may be necessary for the users concerned constitutes a means of better enjoying the supply of the electricity necessary to propel the electric vehicle and is therefore a supply ancillary to the supply of electricity.