Why Is There No Mention of VAT on My Credit Note?
This is a common question! Let’s break it down
The tariff for consumed energy is usually agreed upon between you and your employer. E-Flux by Road prepares a self-billing invoice every month, which includes the amount billed for your energy consumption. This invoice does not mention VAT because, as an individual, you cannot levy VAT on a company.
This is why the tariff you agree on with your employer should already include all taxes (a full rate). E-Flux by Road will then charge your employer the self-billed amount plus VAT, enabling your employer to reclaim the VAT.
Example
Let’s say you and your employer agree on a tariff of €0.25 per kWh, and you consumed 1000 kWh last month:
E-Flux by Road creates a self-billing invoice in your name for €250.00 (no VAT).
This amount is credited to you at the end of the month.
E-Flux by Road charges your employer €250.00 (excl. VAT) or €302.50 (incl. VAT).
Your employer pays the bill and claims back the VAT from the tax authorities.
E-Flux by Road pays the VAT to the tax authorities.
Special Case: Entrepreneurs Exempt from VAT
If you’re an entrepreneur and your company is exempt from VAT, you won’t be able to claim back the VAT. This means you’ll pay approximately 21% more.
How to avoid paying extra:
Export a list of your charges from the E-Flux by Road Dashboard.
Charge the VAT to your company directly.
This approach ensures you don’t overpay, and your financial records remain tax-compliant.