Following ECF's analysis of the Commission's proposal for EU VAT rates reform, the multi-stakeholder Platform for Electromobility has adopted a position paper on the VAT treatment of electric bicycles and other light electric vehicles (LEVs). The platform argues that electric bicycles and LEVs should be treated the same way than electric cars under the proposed new scheme, meaning that Member States would be able to apply reduced VAT rates on all modes of electric mobility.

The European Commission published its proposals to reform the Value Added Tax (VAT) system earlier this year. If the proposal goes ahead, Member States will be able to set reduced or zero VAT rates much more freely than currently. Amongst others, conventional bicycles and electric cars could benefit from reduced or zero VAT, but EPACS (Electrically Power Assisted Cycles) could not. They have been categorised alongside transport powered by fuel, oil and gas as goods whose sale will be subjected to the standard VAT rate of at least 15%.

ECF has argued earlier, together with the Bicycle Industry Association CONEBI, that this proposal has the potential to substantially damage the use of EPACs and needs to be corrected. We are happy  that the members of the Electromobility Platform, which comprises a wide array of stakeholders from the mobility and energy sectors, support us on this issue, showing that cycling is an integral part of future mobility systems.