And that was 9% VAT, so charging your electric car will become considerably more expensive. Or not?
We wrote earlier that the ‘discount’ on charging would still remain. Then we are talking about the tax that is levied on electricity. To mitigate the continuing increase in energy prices, the government has reduced VAT on energy and grid management costs from 21% to 9%. So that will change.
Charging more expensive due to VAT
The amendment that was tabled (and adopted) will therefore not be implemented. The amendment was intended to maintain the discount for longer. That will not happen and the VAT will simply go to 21%, so a hefty increase. This will take effect from 1 January 2023.
You then ‘just’ pay 21 percent VAT on your energy bill. This also concerns your charging sessions. The increase means that you will pay more money if you hang your car on a pole. You pay 12% more when charging your battery.
Energy ceiling
This is accepted, because we will soon have one energy ceiling to get. This eases the suffering a bit. At least, that’s how it is sold to us by the politicians. The cabinet says that inflation is unprecedentedly high and that energy prices are skyrocketing. John, really! That is why the cabinet has set the so-called energy ceiling to provide much-needed relief. But how does that work?
Well, they want all helping households. However, it is a temporary measure (until the end of 2023) and will start in the new year. For gas there will be a maximum rate of € 1.45 per cubic meter up to a consumption of 1,200 cubic meters.
For electricity, the maximum rate is reduced to € 0.40 per kWh and the maximum consumption is increased to 2,900 kWh. This would allow you to charge cheaper, because this rate is considerably lower than the current prices. Statistics Netherlands reports that the average price at the end of 2022 was € 0.73 per kWh. Then you ‘fuel’ € 0.33 cheaper. But if you drive a lot, you quickly go to the ceiling. And then you just pay the much more expensive rate that you agreed with your energy supplier.
By the way: we are talking about home charging here. Charging at a public charging station with, for example, an ANWB charging card costs € 0.439 per kWh. However, the increase in the VAT rate will probably still have to be implemented here.
Do you have an electric car? Let us know in the comments how these measures work out for you.
This article Charging (even) more expensive: VAT in 2023 to 21% appeared first on Autoblog.nl.
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