10 July 2025 • 1 minute read
Supply of electricity for energy tax purposes defined
In a recent judgment, the Amsterdam Court of Appeal had to decide whether an association of owners (VvE) supplying electricity as part of an 'all-in' service package to its members was liable for energy tax and the sustainable energy surcharge (ODE). The central element of the case was the definition of 'supply' under the Dutch Environmental Taxes Act (Wbm), which directly refers to the relevant VAT concepts.
The VvE argued that electricity was merely a component of a broader, indivisible service package that therefore did not constitute a 'supply of energy', but rather a 'supply sui generis' which was held not to constitute a 'supply of energy' and therefore not subject to energy tax. The Court held that even if the composite supply rules should be relevant for Energy tax purposes, in this specific case, there was merely a (single) supply of energy as a predominant supply.
Key takeaway
Exact relevance of specific VAT doctrines affecting the VAT definition of 'supply' and their relevance to energy tax remain a grey area and should always be subject to a careful analysis.
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