Tax on road charging?

In Europe, several countries are introducing road pricing, including the Netherlands. In the Netherlands the aim is to introduce in 2030, but there are recent reports that this is going to be premature with a number of years. This is due to a budget deficit due to the electrification of motor vehicles which reduces revenue from excise duty on fuels.

In the Netherlands the aim is to introduce in 2030

In other European countries, road pricing is already an established system. For example, all Belgium has the OBU system (On Board Unit), where trucks with more than 3.5 tonnes pay a fee over the number of kilometres driven. Sweden is also an example of a country that has introduced road pricing for trucks driving around the cities of Stockholm, Gothenburg and Malmö, called "Trängselskatt" The OBU system was developed by the commercial party Satellite on behalf of the Belgian government and is thus charged VAT on the road charging.

Trängselskatt is a task of the Swedish government that carries out the Swedish Transport Administration. The Swedish Transport Administration is a government agency, but make no mistake, this too is subject to VAT. It is important that transport operators are aware of the tax aspects of road pricing.

Looking at the current Trängselskatt system, you see that even though it is carried out by a government agency, VAT is levied on it.. Unlike most tolls and vignettes, which are collected by a government, do not include VAT. As a transport operator, you are entitled to refund this foreign VAT. In short, road pricing is increasingly being introduced in Europe, with Belgium and Sweden as frontrunners.

The fact that a government agency facilitates the charging of accounts does not mean that VAT is 0% and therefore you, as a transport operator, are entitled to refund this VAT.