Proposal for a COUNCIL IMPLEMENTING DECISION authorising the Netherlands to apply a reduced rate of taxation to electricity supplied to [charging stations for] electric vehicles in accordance with Article 19 of Directive 2003/96/EC
Date: 2021-01-21
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Netherlands, derogation from EU law, electric vehicle, electrical energy, electricity storage device, electricity supply, energy supply, environmental tax, tax relief

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   EUROPEAN COMMISSION  Brussels, 21.1.2021  COM(2021) 23 final 2021/0010 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION authorising the Netherlands to apply a reduced rate of taxation to electricity supplied to [charging stations for] electric vehicles in accordance with Article 19 of Directive 2003/96/EC  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Taxation  of  energy  products  and  electricity  in  the  Union  is  governed  by  Council  Directive 
2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of 
energy products and electricity1 (the ‘Energy Taxation Directive’ or the ‘Directive’). 

Pursuant to Article 19(1) of the Directive, in addition to the provisions laid down in particular 
in  its  Articles  5,  15  and  17,  the  Council,  acting  unanimously  on  a  proposal  from  the 
Commission, may authorise any Member State to introduce further exemptions or reductions 
in the level of taxation for specific policy considerations. 

Article  15(1)(e)  of  the  Directive  allows  Member  States  to  apply  a  tax  reduction  or  tax 
exemption to electricity used for the carriage of goods and passengers by rail, metro, tram and 
trolley bus. However, there is no provision that allows for a tax reduction for electricity used 
for transportation by electric vehicles different from trolley buses. 

By  virtue  of  Council  Implementing  Decision  (EU)  2016/22662,  the  Netherlands  has  already 
been authorised to apply a reduced level of taxation to electricity supplied to charging stations 
for electric vehicles until 31 December 2020.  

The objective of this proposal is to allow the Netherlands to continue to apply a reduced level 
of  taxation  to  electricity,  supplied  to  charging  stations  for  electric  vehicles,  as  requested, 
starting from 1 January 2021 and until 1 January 2025. This reduction is meant to continue to 
promote the use of cleaner modes of transportation, as well as to reduce local air pollution and 
the CO2 emissions from transport. 

By letter dated 30 March 2020 and subsequent correspondence, in accordance with Article 19 
of the Directive, the Dutch authorities informed the Commission that they intend to  apply a 
reduced  tax  rate  of  EUR  51.64  per  MWh  to  electricity  supplied  to  charging  stations  for 
electric  vehicles  for  the  annual  consumption  of  up  to  10  MWh  per  charging  station.  The 
consumption  over  10  up  to  50  MWh  would  be  taxed  at  the  rate  of  EUR  51.64,  the 
consumption  over  50  up  to  10  000  MWh  would  be  taxed  at  a  rate  of  EUR  13.75  and  the 
annual consumption over 10 000 MWh would be taxed at a rate of EUR 0.56. For charging 
stations which are not covered by the tax rates for business use, the annual consumption over 
10 000 MWh would be  taxed at  a rate of EUR  1.13. The overall tax rate will be  above the 
minimum  rate  of  taxation  for  electricity  for  business  use  as  laid  down  in  Directive 
2003/96/EC.  The  national  rate  of  taxation  currently  applicable  to  electricity  used  to  charge 
electric vehicles for the initial 10 MWh of the annual consumption would be EUR 94.28 per 
MWh, which is the national rate of taxation of electricity for business and non-business use 
for this consumption level. Currently the Netherlands applies differentiated national tax rates 
for electricity according to the quantity consumed in accordance with Article 5, of Directive 
2003/96/EC3. 

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3 

OJ L 283, 31.10.2003, p. 51–70. 
OJ L 342, 16.12.2016, p. 30–31. 
The  Netherlands  applies  differentiated  tax  rates  for  electricity  in  line  with  Article  5  of  Directive 
2003/96/EC on the basis of quantitative consumption levels. According to the last information provided, 
the  national  tax  rates  are  as  follows:  EUR  94.28  per  MWh  for  0-10  MWh  of  electricity  consumed 

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Supplementary information was received from the Netherlands on 20 November 2020.  

The Netherlands would continue to apply the reduced rate of taxation to electricity supplied to 
electric vehicles by dedicated public and, in some cases, private or corporate charging stations 
for  electric  vehicles.  These  charging  stations  have  normally  a  direct  connection  to  the  grid. 
The  charging  station  operators  and  the  private  or  corporate  entities  entitled  to  apply  the 
reduced rate will be obliged to submit a declaration to the electricity supplier stating that the 
grid connection is exclusively intended for the supply of electricity to electric vehicles. The 
request  made  by  the  Netherlands  excludes  from  the  reduction  charging  stations  where  the 
charging takes place with exchange of batteries. 

The overall rate of taxation, including the reduced rate for the initial 10 MWh of the annual 
consumption of each entity, would be well above the minimum level set in Annex I, Table C 
of Council Directive 2003/96/EC. 

According  to  the  Dutch  authorities,  in  case  the  charging  station  operator  intends  to  apply  a 
reduced  tax  rate  to  electricity  for  its  charging  stations,  it  would  be  obliged  to  submit  a 
declaration to the electricity supplier explaining which of the grid connections are exclusively 
intended for the supply of electricity to electric vehicles. The measure would apply only for 
the  electricity  supplied  to  the  designated  connections.  Furthermore,  the  charging  station 
operator is obliged to inform the electricity supplier in case it has financial problems and is 
eligible  for  aid  in  line  with  the  Guidelines  on  State  aid  for  rescuing  and  restructuring  non-
financial undertakings in difficulty (2014/C 249/01). In that case, the supplier will no longer 
be allowed to apply the reduced energy tax rate on electricity. 

The advantage derived from the reduced tax will vary depending on the amount of kilowatt-
hours.  As  highlighted  by  the  Dutch  authorities,  based  on  a  study  commissioned  at  national 
level,  on  average  a  supply  of  3  900  kWh  is  estimated  per  charging  station  in  2020.  In  that 
case, the maximum advantage per charging station in 2020 is estimated at EUR 289 per year. 
This advantage will grow if the standard energy tax increases. Moreover, a charging station 
can  in  practice  supply  12  000  kWh  per  year.  This  leads  to  an  expected  maximum  total 
advantage of EUR 815 in 2020. The number of charging stations per beneficiary varies. 

As reported by the Dutch authorities, currently there are around 40 charging station operators 
in the Netherlands. 

The measure is open to all EU operators without discrimination. The country of origin of the 
operator  of  the  charging  station  is  not  a  condition  to  benefit  from  the  measure.  A 
transportation company or a household having a charging station could also benefit from the 
measure provided they fulfil the conditions mentioned above. 

As highlighted in the request, a study commissioned by the Dutch ministry of transportation 
has  showed  that  currently,  in  many  cases,  there  is  still  not  a  positive  business  incentive  for 
public  charging  stations.  This  is  an  obstacle  for  the  development  of  the  public  charging 
infrastructure  and  the  use  of  electric  cars.  The  measure  aims  at  continuing  to  improve  the 
business  case for public  charging stations, which should make the use of electric cars more 
attractive and improve the environment. A fast development of public charging infrastructure 

annually, EUR 51.64 for quantities above 10 up to 50 MWh, EUR 13.75 for quantities above 50 up to 
10 000 MWh. For consumption above  10 000 MWh the tax rates are EUR 0.56 for business use and 
EUR 1.13 for non-business  use. As specified by the Dutch authorities, the rates in the energy tax are 
subject to a yearly adjustment based on the inflation rates. 

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is  of  vital  importance  for  the  transition  from  vehicles  with  internal  combustion  engines 
running  mostly  on  fossil  fuels  to  electric  vehicles.  A  well-developed  infrastructure  is 
necessary to make electric vehicles a feasible alternative to traditional road transport. This is 
important because of the environmental benefits of the transition to electric driving. Electric 
vehicles  generally  produce  less  CO2-emissions  and  local  air  pollutants  (PM10,  NOx)  than 
fossil fuel vehicles4. According to the Dutch authorities, in 2019 the percentage of electricity 
produced by coal was 14%. It is projected that in 2030 that percentage will be 0%. In 2019, 
the  electricity  mix  in  the  Netherlands  from  renewable  sources  was  18%  in  2019  and  it  is 
expected to be 58% in 2025 and 75% in 2030. 

The request highlights that the charging station operator would have the option to pass (part 
of)  the  advantage  of  the  measure  on  to  their  customers  in  the  form  of  a  reduction  on  the 
charging rates. In that case, the cost of ownership of electric vehicles would be reduced due to 
lower costs for driving. This will create an incentive for consumers to choose a new electric 
car over a new fossil fuel car. Another positive effect of the lower charging rates is that the 
owners of plug-in hybrid vehicles that can run on electricity as well as on fossil fuel will be 
encouraged to use electric energy rather than fossil fuel for transportation. 

As regards the period of application of the measure, in principle, that period should be long 
enough  in  order  to  continue  to  provide  legal  certainty  to  electricity  operators,  private  or 
corporate entities. The Netherlands has asked for a prolongation of four years compared to the 
maximum  possible  six  years.  Under  these  circumstances,  it  appears  appropriate  to  grant the 
authorisation requested for a period of four years as requested by the Netherlands and allowed 
by the Directive.  

• 

Consistency with existing policy provisions in the policy area 

According  to  Article  19(1),  third  subparagraph,  of  the  Directive,  each  request  shall  be 
examined  taking  into  account,  inter  alia,  the  proper  functioning  of  the  internal  market,  the 
need to ensure fair competition and EU health, environment, energy and transport policies. 

The  application  of  the  tax  reduction  as  described  will  not  create  any  obstacles  to  intra-EU 
trade. The measure is open to all EU operators without discrimination. The country of origin 
of  the  operator  of  the  charging  station  is  not  a  condition  for  applying  the  measure.  The 
derogation  would  not  lead  to  any  problem  with  the  functioning  of  the  internal  market  and 
would  not  counteract  -but  rather  support-  the  achievement  of  the  EU's  policy  objectives 
especially in the fields of energy, transport, climate change and environment. 

Provisions under the Energy Taxation Directive 

Article 19(1), first subparagraph, of the Directive reads as follows:  

In addition to the provisions set out in the previous Articles, in particular in Articles 5, 15 and 
17, the Council, acting unanimously on a proposal from the Commission, may authorise any 
Member  State 
for  specific  policy 
considerations. 

further  exemptions  or  reductions 

introduce 

to 

According to the Dutch authorities, the national measure in question fulfils this requirement. 
It follows from the intention of the Netherlands to reduce the emissions of greenhouse gases 
and air pollutants from vehicles and continue to support the EU climate change objective to 

4 

https://ec.europa.eu/transport/themes/urban/vehicles/road/electric_en 

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reduce CO2 emissions and increase the share of renewables in the final energy consumption 
in  the  transport  sector.  It  is  considered  that  the  possibility  of  a  tax  reduction  to  electricity 
supplied to electric vehicles would offer consumers additional incentive to use cleaner energy 
and improve the environment. 

State aid rules 

The  Dutch  authorities  acknowledge  that  the  measure  constitutes  State  aid  in  favour  of 
operators of charging stations for electric vehicles, which may qualify as block exempted aid 
under Article 44 of the Commission Regulation 651/2014/EU5. 

Provided  that  the  measure  respects  the  conditions  laid  down  in  Article  44  of  the  General 
Block Exemption Regulation (Regulation 651/2014/EU) as well as the general conditions laid 
down therein, the measure falls within the scope of application of that Regulation and is by 
consequence exempt from the prior notification requirement. 

• 

Consistency with other Union policies 

Environment and climate change policy 

The  implementation  of  this  measure  will  contribute  to  the  reduction  of  the  emissions  from 
vehicles  and  support  the  EU's  long-term  climate  goals  of  reducing  CO2  emissions.  As  per 
estimations provided by the Dutch authorities, the expected electricity mix in the Netherlands 
from renewable source will be around 58 % in 2025 and will reach 75 % in 2030. According 
to  the  Netherlands,  the  electricity  used  in  public  charging  infrastructure  almost  exclusively 
originates  from  renewable  energy.  A  study6  carried  in  the  Netherlands  shows  that  this  may 
lead to 70 % reduction in the CO2 emissions, which is fully in line with Directive 2009/28/EC 
on the promotion of the use of energy from renewable sources7. As highlighted in the request, 
it  can  also  help  the  Netherlands  meet  their  2020  10%  target  for  energy  from  renewable 
sources in transport set by that Directive. 

Apart  from  the  greenhouse  gas  emissions  reductions,  the  request  highlights  that  a  more 
widespread use of electric cars will significantly help in improving air quality: urban pollution 
hot-spots  are  one  of  the  biggest  challenges  and  emissions  from  transport  are  the  main 
contributor to pollution (especially to NO2 exceedance) in this regard. Moreover, even when 
the  electricity  is  not  fully  produced  from  renewable  energy  sources,  most  of  the  benefits 
would remain as the emissions stemming from generation are located far from the air quality 
hot-spots  and  the  emission  sources  -power  plants-  would  be  more  amenable  to  pollution 
control.  

Energy policy 

As reported by the Dutch authorities, a study commissioned at national level has shown that 
currently in many cases there is not yet a positive business case for public charging stations. 
This is an obstacle for the deployment of public charging infrastructure and the use of electric 
cars.  

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Commission Regulation 651/2014/EU declaring certain categories of aid compatible  with the  internal 
market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, pp. 1–78). 
TNO ‘Energie- en milieu-aspecten van elektrische personenvoertuigen’, (7 April 2015), pp. 11 – 15. 
OJ L 140, 5.6.2009, p. 16–62 

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Therefore, the declared aim of the measure is to improve the business case of public charging 
stations,  which  should  make  the  use  of  electric  cars  more  attractive  and  improve  the 
environment.  A  fast  rollout  of  public  charging  infrastructure  is  of  vital  importance  for  the 
transition from fossil fuel vehicles to electric vehicles. A good infrastructure is necessary to 
make electric vehicles a realistic alternative to fossil fuel vehicles. This is important because 
of  the  environmental  benefits  of  the  transition  to  electric  driving.  Electric  vehicles  have 
generally  both  lower  CO2-emissions  and  lower  air  polluting  emissions  (PM10,  NOx)  than 
fossil fuel vehicles. 

As highlighted in the request, the charging station operator also has the option to pass (part of) 
the advantage of the measure on to their customers in the form of a reduction on the charging 
rates. In that case the cost of ownership of electric vehicles will be reduced, which again has a 
positive influence on the choice of purchasing a new electric car instead of a new fossil fuel 
car.  Another  positive  effect  of  lower  charging  rates  is  that  the  owners  of  plug-in  hybrid 
vehicles that can run as well on electricity as fossil fuel will be encouraged to choose to use 
electric energy rather than fossil fuel. 

Transport policy 

The  initiative  is  fully  in  line  with  Directive  2014/94/EU8  on  the  deployment  of  alternative 
fuels  infrastructure.  This  Directive  requires  Member  States  to  develop  national  policy 
frameworks  for  the  market  development  of  alternative  fuels  and  their  infrastructure,  in 
particular  in  urban/suburban  and  other  densely  populated  areas.  The  Directive  obliges 
Member States to install an appropriate number of publicly accessible charging stations.  

Moreover,  the  EU  transport  system  needs  to  decarbonise  and  modernise  to  reduce  its 
emissions by 90% in 2050. Electric mobility is key, and will accelerate decarbonisation and 
reduce pollution, especially in cities, and new mobility services will increase the efficiency of 
the transport system and reduce congestion9. 

Internal market and fair competition 

From the point of view of the internal market and fair competition, the measure is open to all 
EU  operators  without  discrimination.  The  country  of  origin  of  the  operator  of  the  charging 
station  is  not  a  condition  for  applying  the  measure.  The  derogation  would  not  lead  to  any 
problem with the functioning of the internal market. 

In  the  present  case,  a  significant  distortion  of  the  above-mentioned  kind  can  all  the  less  be 
expected  since  the  Netherlands  will  respect  the  minimum  level  of  taxation  prescribed  by 
Directive 2003/96/EC for electricity.  

The timeframe for which it is proposed the authorization to apply a reduced tax rate, unless 
there will be significant changes in the current framework and situation, makes it unlikely that 
the analysis conducted in the preceding paragraphs will change before the date of expiry of 
the measure. 

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Directive  2014/94/EU  of  the  European  Parliament  and  of  the  Council  of  22  October  2014  on  the 
deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, pp. 1–20). 
Strategy for Energy System Integration (COM(2020) 299 final, July 2020). 

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 19 of Council Directive 2003/96/EC. 

• 

Subsidiarity (for non-exclusive competence)  

The  field  of  indirect  taxation  covered  by  Article  113  of  TFEU  is  not  in  itself  within  the 
exclusive competence of the European Union within the meaning of Article 3 of TFEU. 

However,  pursuant  to  Article  19  of  Directive  2003/96/EC,  the  Council  has  been  granted  an 
exclusive competence, as a matter of secondary law, to authorise a Member State to introduce 
further exemptions or reductions within the meaning of that provision. Member States cannot 
therefore substitute themselves for the Council. As a result, the principle of subsidiarity is not 
applicable  to  the  present  implementing  decision.  In  any  event,  since  this  act  is  not  a  draft 
legislative act, it should not be transmitted to national Parliaments pursuant to Protocol No 2 
to the Treaties for review of compliance with the subsidiarity principle. 

• 

Proportionality 

The proposal respects the principle of proportionality. The tax reduction does not exceed what 
is necessary to attain the objective in question. 

• 

Choice of the instrument 

The  instrument  proposed  is  a  Council  implementing  decision.  Article  19  of  Directive 
2003/96/EC makes provision for this type of measure only. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The measure does not require the evaluation of existing legislation. 

• 

Stakeholder consultations 

This proposal is based on a request made by the Netherlands and concerns only this Member 
State. 

• 

Collection and use of expertise 

There was no need for external expertise. 

• 

Impact assessment 

This proposal concerns an authorisation for an individual Member State upon its own request 
and  does  not  require  an  impact  assessment.  The  impact  on  prices  is  limited,  the  impact  on 
human  health  and  the  environment  is  positive  as  the  measure  aims  at  lowering  the  use  of 
fossil fuels and promote cleaner energy in transport. 

Moreover, the information provided by the Netherlands suggests that the measure will have a 
relatively limited impact on tax revenues10 and the tax rate for electricity will still be above 

10 

The Dutch estimation of the annual budgetary expenditure is € 4.2 million for 2021, € 5.3 million for 
2022, € 6.2 million for 2023 and € 7 million for 2024. 

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the  minimum  level  of  taxation  set  in  Directive  2003/96/EC.  The  Netherlands  expects  the 
measure  to  have  a  positive  impact  on  the  achievement  of  its  environmental  goals  and  in 
particular on the reduction of emissions and improvement of local air quality. 

• 

Regulatory fitness and simplification 

The measure does not provide for a simplification. It is the result of the request made by the 
Netherlands and concerns only this Member State. 

• 

Fundamental rights 

The measure has no bearing on fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  measure  does  not  impose  any  financial  or  administrative  burden  on  the  Union.  The 
proposal therefore has no impact on the budget of the Union. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

An  implementation  plan  is  not  necessary.  This  proposal  concerns  an  authorisation  for  a  tax 
reduction  for  an  individual  Member  State  upon  its  own  request.  It  is  provided  for  a  limited 
period, until 1 January 2025. The tax rate that will apply will be above the minimum level of 
taxation  set  by  the  Energy  Taxation  Directive.  The  measure  can  be  evaluated  in  case  of  a 
request for a renewal after the validity period has expired. 

• 

Explanatory documents (for directives) 

The proposal does not require explanatory documents on the transposition.  

• 

Detailed explanation of the specific provisions of the proposal 

Article  1  provides  the  definition  of  'electric  vehicles',  which  is  taken  from  Article  2  of 
Directive  2014/94/EU.  The  definition  provides  clarity  about  the  scope  of  application  of  the 
measure. 

Under  Article  2,  the  Netherlands  will  be  allowed  to  apply  a  reduced  rate  of  taxation  to 
electricity supplied to charging stations directly used for charging electric vehicle. 

The level of taxation after reductions can never be lower than the EU minima set in Directive 
2003/96/EC  and  the  reduction  would  apply  to  electricity  used  both  by  private  and  business 
cars.  

The national measure provided by this decision is part of a policy designed by the Netherlands 
to  decrease  the  CO2  emissions,  improve  air  quality,  increase  the  share  of  renewables  in 
transport and contribute to  the EU's  climate change objective. The measure will provide for 
incentives to consumers to switch to cleaner energy in transport. 

Article 3 specifies that the authorisation requested is granted with effect from 1 January 2021 
for a period of four years, as requested by the Netherlands.  

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It also clarifies that if the Council provides for general rules on tax advantages for electricity 
for electric vehicles, the Decision shall cease to apply on the day on which those general rules 
become applicable.   

Article 4 stipulates that the decision is addressed to the Netherlands. 

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2021/0010 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

authorising the Netherlands to apply a reduced rate of taxation to electricity supplied to 
[charging stations for] electric vehicles in accordance with Article 19 of Directive 
2003/96/EC 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having  regard  to  Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the 
Community framework for the taxation of energy products and electricity1, and in particular 
Article 19 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

1 
2 

By Council Implementing Decision (EU) 2016/22662, the Netherlands was authorised 
to apply a reduced rate of taxation to electricity supplied to charging stations directly 
used for charging electric vehicles until 31 December 2020, in accordance with Article 
19 of Directive 2003/96/EC. 

On  30  March  2020,  the  Netherlands  sought  authorisation  to  continue  to  apply  a 
reduced rate of taxation to electricity supplied to electric vehicles for the period from 1 
January 2021 to  1 January  2025. At the  request  of the Commission, the Netherlands 
provided additional information in support of its application on 20 November 2020. 

The reduced rate of taxation aims at further promoting the use of electric vehicles by 
reducing the costs for the electricity used to propel those vehicles. 

The  use  of  electric  vehicles  avoids  emissions  of  air  pollutants  originating  from  the 
combustion  of  petrol  and  diesel  or  other  fossil  fuels  and  therefore  contributes  to  an 
improvement  of  air  quality  in  cities.  The  use  of  electric  vehicles  can  furthermore 
reduce  CO2  emissions,  particularly  where  the  electricity  used  is  produced  from 
renewable energy sources. A reduced rate of taxation to electricity supplied to electric 
vehicles  is  therefore  expected  to  contribute  to  the  environmental,  health  and  climate 
policy objectives of the Union. 

The  Netherlands  highlighted  that  the  reduced  rate  of  taxation  would  apply  to  the 
supply of electricity to charging stations for electric vehicles with a direct connection 
to the electric grid, including public charging stations and some  private or corporate 
charging stations.  

OJ L 283, 31.10.2003, p. 51. 
Council  Implementing  Decision  (EU)  2016/2266  of  6  December  2016  authorising  the  Netherlands  to 
apply a reduced rate of taxation to electricity supplied to charging stations for electric vehicles (OJ L 
342, 16.12.2016, p. 30). 

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(6) 

(7) 

(8) 

The Netherlands asked for the reduced rate of taxation on electricity to apply only to 
charging stations where the electricity is used to charge an electric vehicle directly and 
not to apply to electricity that is provided through the exchange of batteries. 

A  reduced  rate  of  taxation  on  electricity  supplied  to  electric  vehicles  via  charging 
stations will improve the business case for publicly accessible charging stations in the 
Netherlands, which will make the use of electric cars more attractive and result in an 
improvement of air quality. 

Considering  the  relatively  limited  number  of  electric  vehicles  and  the  fact  that  the 
level  of taxation on electricity supplied to  electric vehicles via charging stations that 
are for business use will be above the minimum level of taxation laid down in Article 
10 of Directive 2003/96/EC, the reduced taxation rate is unlikely to lead to distortions 
in competition during the period for which the authorisation is requested and will thus 
not negatively affect the proper functioning of the internal market. 

(9) 

The level of taxation on electricity supplied to  electric vehicles via charging stations 
that  are  not  for  business  use  will  be  above  the  minimum  level  of  taxation  for  non-
business use laid down in Article 10 of Directive 2003/96/EC. 

(10)  Each  authorisation  granted  under  Article  19(1)  of  Directive  2003/96/EC  is  to  be 
strictly limited in time. In order to ensure that the authorisation period is sufficiently 
long so as not to discourage relevant economic operators from making the necessary 
investments,  it  is  appropriate  to  grant  the  authorisation  for  the    requested  period. 
However, the authorisation should cease to apply from the date of application of any 
general  provisions  on  tax  advantages  for  electricity  supplied  to  electric  vehicles 
adopted by the Council under Article 113 or any other relevant provision of the Treaty 
on the Functioning of the European Union, should such provisions become applicable 
prior to 1 January 2025. 

(11) 

In order to avoid a potential increase in the administrative burden for distributors and 
redistributors  of  electricity  resulting  from  changes  to  the  applicable  tax  rates,  the 
Netherlands should be able to apply the reduced rate of taxation to electricity supplied 
to electric vehicles without interruption. The authorisation requested should therefore 
be granted with effect from 1 January 2021, in order to follow seamlessly on from the 
prior arrangements under Implementing Decision (EU) 2016/2266.  

(12)  This  Decision  is  without  prejudice  to  the  application  of  Union  rules  regarding  State 

aid, 

HAS ADOPTED THIS DECISION:  

For the purpose of this Decision, the definition of 'electric vehicle' laid down in Article 2  of 
Directive 2014/94/EU of the European Parliament and of the Council3 shall apply. 

Article 1 

The  Netherlands  is  authorised  to  apply  a  reduced  rate  of  taxation  to  electricity  supplied  to 
charging stations directly used for charging electric vehicles, excluding charging stations for 

Article 2 

3 

Directive  2014/94/EU  of  the  European  Parliament  and  of  the  Council  of  22  October  2014  on  the 
deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1). 

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exchange of batteries for electric vehicles, provided that the minimum levels of taxation laid 
down in Article 10 of Directive 2003/96/EC are respected. 

Article 3 

This Decision shall apply from 1 January 2021 until 1 January 2025. 

However,  should  the  Council,  acting  on  the  basis  of  Article  113  or  any  other  relevant 
provision of the Treaty on the Functioning of the European Union, provide for general rules 
on  tax  advantages  for  electricity  supplied  to  electric  vehicles,  this  Decision  shall  cease  to 
apply on the day on which those general rules become applicable. 

This Decision is addressed to the Kingdom of the Netherlands. 

Done at Brussels, 

Article 4 

For the Council 
The President 

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