Belgium: Circular concerning VAT treatment of charging facilities and charging of electric vehicles

VAT treatment of the installation of charging stations for electric vehicles, charging of an electric vehicle, and deductibility of input VAT

Charging of electric vehicles

The Belgian tax authorities published Circular 2021/C/113 concerning the value added tax (VAT) treatment of the installation of charging stations for electric vehicles and related supplies and services, the charging of an electric vehicle, and the deductibility of input VAT.

The circular implements measures in legislation that was enacted in November 2021. Read TaxNewsFlash

The installation of a charging station generally refers to the supply and installation of a charging station with one or more charging points for an electric vehicle. The installation of a charging station is generally subject to the standard VAT rate of 21% (for installation at business premises, along public roads, and parking spaces). In certain cases, however, the reduced VAT rate of 6% may apply (charging station installed at a private dwelling in use for more than 10 years).

As to the deductibility of input VAT, a distinction is made between charging stations installed at the business premises and those installed at the private dwelling of an employee. A business charging station is considered to be part of the electric installation of the business, and the right to deduct input VAT is determined according to the general rules (the VAT deduction limitation for car costs does not apply). A home charging station that is arranged by an employer for the employee, is not part of the electric installation of the business, and the VAT deduction depends on the fact whether the charging station is made available to the employee gratis (VAT deduction according to the business use of the car) or for consideration (100% VAT deduction, VAT is calculated on the normal value).

The charging of an electric vehicle qualifies as a supply of a good (electricity) and is subject to the standard VAT rate of 21%. For VAT purposes, this supply is treated as “fuel costs.” The charging typically involves services rendered by an e-mobility service provider (eMP) and charge point operator. For VAT purposes, a distinction is made between charging at (semi-)public charging stations and business charging stations (with the VAT deduction according to the business use of the car with a maximum of 50%) and charging at a home charging station (the VAT implications depend on the contractual arrangements between the employer, employee and the eMP, each with their own VAT treatment).

Read a December 2021 report prepared by the KPMG member firm in Belgium

 

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