Fluvius Antwerpen, an electricity distribution network operator, summoned an individual called MX to pay for unlawfully used electricity. The case raised questions about the VAT treatment of such scenarios, specifically whether the electricity should be regarded as a supply of goods or a transfer of ownership by order of a public authority. The Court ruled that the supply of electricity, even if involuntary and due to unlawful conduct, constitutes a supply of goods for consideration. The Court also noted that Fluvius Antwerpen’s activities correspond to a public service obligation and therefore fall within the definition of a body governed by public law. However, the supply of electricity is not subject to VAT only if it is negligible in scale and economic impact, which is not the case in this scenario.
Source KPMG
See also C-677/21 (Fluvius Antwerpen) – Judgment – Unlawful use of energy is a supply of goods
