April 2023

Tax Consequences of Electric Vehicle Interpretation

If free electric car charging services are available to all customers, then customers will not have to pay tax on this service. This has been confirmed by the director of the National Tax and Customs Information Office (KIS) in a legal opinion that the e-vehicle industry has long been awaiting. Interestingly, the position taken by the Treasury may have applicability in a much wider context.

EV Breakthrough

According to Penteris Head of Tax Piotr Prokocki (who is both an attorney and tax advisor), “The KIS interpretation is an important ruling for the industry. The development of the electric vehicle market requires the introduction of incentives that motivate consumers to switch to using electric cars and pay the higher costs associated with their purchase. One of these incentives is the possibility of charging electric vehicles for free. To date, there has been no resolution as to whether the use of such services results in tax income on the part of electric car owners.”

Wider Application

Piotr Prokocki adds that the interpretation of the National Tax and Customs Information Office (KIS) may find wider application, “The case admittedly concerns services for charging electric vehicles for free for no more than 30 minutes; however, the rationale presented by the KIS is of such a universal nature that it could also find application for services where there is no such time limitation.”

based on a commentary by Piotr Prokocki originally in prawo.pl 18.04.2023