An amendment added as part of the “Finance Bill for 2021” and adopted by the Senate will reduce the VAT from 20 to 5.5% for the home installation of a charging infrastructure for electric vehicles. This reduction will come into effect on January 1, 2021.
Good news for all individuals looking to install a home charging station. Thanks to an amendment adopted by the Senate at first reading as part of the “Finance bill for 2021”, the installation of such an infrastructure will benefit from a reduced VAT rate, which should be financially favorable for the final user.
« It provides for the application of the reduced VAT rate of 5.5% to the laying, installation and maintenance of charging infrastructure for electric vehicles in residential premises.», Can we read on a official document of the Senate. This is a considerable drop compared to the 20% currently applied to individuals and businesses.
Companies not concerned
Companies, in fact, are not affected by this measure. The words “living quarters” have been added voluntarily to attest to this. This provision will come into force on January 1, 2021, and will therefore apply to all individuals wishing to operate a charging station at home.
Up to now, taking advantage of a 5.5% VAT rate was possible … on condition that certain prerequisites were met: the charging station had to be installed in a home at best two years old, as recalled. ChargeGuru, specializing in the installation of electric terminal infrastructure in France.
The principle of the right to take
The amendment therefore bury this rule, which now applies to any accommodation, regardless of its seniority. On the other hand, the VAT rate of 10% applied to reinforced sockets and industrial sockets – still for homes over two years old – remains in place.
Let us also try to recall the principle of the “right to plug”, which grants any owner of an electric vehicle residing in a condominium the right to install at his own expense a charging solution in his parking space. If the installation cost varies according to the material used and the technical difficulties encountered, financial aid – such as that ofTo come – allow to lighten the final note.