VAT rate applicable to electric car charging in Finland
Electric vehicles (EVs) have gained significant popularity in Finland, and with it comes the need for charging infrastructure.
Electric vehicles (EVs) have gained significant popularity in Finland, and with it comes the need for charging infrastructure.
Electric Charging of Vehicles and VAT Rate 24%
The sale of electricity for charging electric vehicles is considered a sale of goods subject to VAT. The standard VAT rate of 24% applies to such transactions. But, what about the supply of electricity to vehicles within a parking space rented?
Finnish Tax Administration's Updated Guidance
In a recent development, the Finnish Tax Administration updated the official guidance (VH/3469/00.01.00/2023) regarding the VAT treatment of the rental of parking spaces for vehicles. The updated guidance explicitly recognizes that charging electric vehicles in connection with the rental of a parking space is a separate supply of goods for VAT purposes in Finland. This means that businesses providing electric vehicle charging services as part of parking space rentals will now be subject to the standard VAT rate of 24%.
Furthermore, the rental of the parking space itself is generally subject to the 24% VAT rate, unless the supply is exempt from VAT, such as in the case of VAT-exempt rental of business premises or an apartment.
As the popularity of electric vehicles continues to grow, staying informed about VAT changes and ensuring compliance is vital for businesses operating in this sector.
Have a look at our overview of VAT rates in Finland.