Swedish Tax Agency clarifies its view on charging stations for electric vehicles

Electric vehicles and their VAT treatment have been under the recent spotlight, this time more specifically regarding their charging stations. There has been some debate regarding whether or not charging stations for electric vehicles constitute fixed or movable property and the VAT impact thereof.

Fortunately, we've revved up the research engines. Here's what you need to know about recent changes for electric vehicles and charging stations in Sweden.

Background

Recent questions and debates emerged regarding electric vehicle charging stations and whether or not they are rightfully categorised as 'immovable property' for VAT purposes. There was particular doubt that those mounted on concrete foundations or connected to a building's electrical system are considered "immovable" or "movable" property for VAT purposes. This distinction impacts tax liability, deductibility, and other associated rules.

Charging stations for electric vehicles – fixed or movable property?

The Swedish Tax Agency, also referred to as 'Skatteverket,' has recently changed its view on whether charging stations for electric vehicles are considered immovable property for VAT purposes. In brief, for VAT purposes, immovable property means land, any buildings or fixtures attached to the land.

Recent changes confirm that charging stations are not considered immovable property for VAT purposes, even if they are mounted on concrete foundations in the ground or on the wall of a building and connected to the building's electrical system.

Although this may not seem like a significant decision at first glance, it directly impacts the tax liability and deduction rights for charging stations to be transferred or rented out. So why the shift?

The change in view was based on the EU VAT Directive and the interpretation of the Swedish VAT Act. They considered factors such as the ability to dismantle or move the charging stations quickly, which encouraged a reassessment. In conclusion, it was decided that charging stations do not meet the criteria for immovable property under any of the relevant points in the VAT Directive.

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