For business (B2B) users, prices in the Northe app are now shown without VAT. This change aligns with standard B2B practice, where prices are normally listed excluding VAT and the correct VAT treatment is applied on the invoice.
There are three main reasons for this change:
1. Standard B2B pricing practice
Businesses usually work with prices excluding VAT. This makes cost comparisons and accounting simpler and ensures that the price you see in the app matches how your company normally handles supplier pricing.
2. VAT rules for EV charging vary
When selling electricity for EV charging, the applicable VAT rate can differ based on factors such as:
- Where your company is registered
- Where the charging session takes place
- Local tax regulations
Showing only net prices ensures that VAT is calculated correctly on the invoice, according to the rules that apply to each specific session.
3. Reverse charge can apply
In some cross-border B2B charging scenarios, reverse-charge rules apply. This means no VAT is added by us, and the business customer instead accounts for VAT in their own country. If we were to show VAT correctly in the app for every possible scenario - including when reverse charge applies - it would result in prices that look inconsistent or even contradictory between charging locations. This would create unnecessary confusion when comparing prices in the app.
By always showing net prices for business accounts, we avoid misleading comparisons and ensure that all VAT (or reverse-charge) handling is done correctly and transparently on the final invoice.
What about private users (B2C)?
For private users, VAT continues to be shown in the app as before, since consumer VAT rules are simple and consistent.