Fuel and Electric Vehicle Charging Cards: Tax Optimization vs. Abuse of Law
Fuel and Electric Vehicle Charging Cards: Tax Optimization vs. Abuse of Law

Summary/Abstract: The article analyzes the tax issue of VAT on fuel and charging cards, examines their economic and legal basis from the point of view of tax justice and possible abuse of law. The question is whether transactions with both types of cards are of the same nature. Based on European and national legislation and the case law of the Court of Justice of the EU (in particular the Vega and Digital Charging Solutions cases), it turns out that in the case of fuel cards, the tax assessment depends on the specific business model. However, in the case of charging cards, the supply of electricity through an intermediary is classified as a chain supply of goods (tangible assets) thanks to the legal fiction of a commission contract. The conclusion draws attention to the thin line between tax optimization and circumvention of the law. To achieve an effective solution, it is necessary to harmonize legislation and streamline modern control mechanisms, such as electronic records and automated information exchange according to DAC 7.

• Details
• Contents