VAT around EV charging is complex. Avoid it where possible. But if it does apply, there are also benefits - and we will take you far.
When does a VvE become VAT-liable for charging?
A VvE is in principle not a business and does not need to charge VAT. But as soon as the VvE sells electricity to residents - i.e. charges more than the purchase price - this qualifies as an economic activity and the VvE must remit VAT. If the power is sold to an external Charge Point Operator (CPO), the VvE equally becomes obliged to register for VAT, creating an unwanted double VAT burden for the EV driver. If you can avoid VAT liability, this is almost always the better choice.
The Small Business Scheme (KOR)
The Small Business Scheme (KOR) applies to businesses with annual turnover below €20,000. If the VvE's VAT-liable turnover - in this case the charging cost pass-through - stays below that threshold, the VvE can opt for the KOR and does not need to file VAT returns. For many smaller VvEs this is an attractive option.
The benefits of VAT liability
If a VvE does become VAT-liable, there are also benefits. VAT on the installation, on electricity procurement and on maintenance and management costs is potentially recoverable. This can save tens of thousands of euros on the investment.
The drawbacks often outweigh the benefits
VAT liability means: quarterly VAT returns, a separate VAT administration and careful attention with every invoice. For a VvE not accustomed to this, it is a significant burden. We therefore always aim to prevent VAT liability. When it is unavoidable, we prepare the VAT return at no extra cost. We can also act as fiscal representative and as intermediary using our BECON number.