The VAT rate for e-bikes might be reduced to 7%. The German Council has already approved the decision of Europe. However, the European Parliament's approval is still necessary for March, after which it is the Federal Government's turn.
Even though individual member countries determine VAT legislation in Europe, the EU stipulates essential framework criteria. The tax rate now differentiates between necessities (7 percent) and other commodities (19 percent) in Germany. Consequently, bicycles and e-bikes are now excluded from the so-called fundamental requirement. However, with the Council of Europe's unanimous vote on December 7, 2021, electric bicycles and bicycles have now been suggested for a lower tax rate. Solar panels, waste recycling devices, and other items in the field of sustainability, in addition to e-bikes, have been added to the list with a lower tax rate, according to eBike News.
The two-wheeler sector is pleased, and e-bikes are expected to become more appealing.
There had been a lengthy and challenging fight between two-wheeled industrial interest groups before it. As early as 2018, the industrial representation of CONEBI, the umbrella group ECF, and the ADFC produced a combined position document. As a result, the associations are now happy with the Council of Europe's decision. Consequently, you may anticipate e-bike prices to fall and their desirability to other means of transportation to rise. However, it will take some time for end-users to realize the tax decrease. Two different stages are necessary, specifically the acceptance of the European Parliament in March 2022 and the implementation or actual tax decrease among the member states. It is now up to the incoming federal administration to put the decreased VAT on e-bikes and bicycles into effect as soon as feasible. Belgium gave an excellent example: in 2019, Parliament resolved to lower bicycle and e-bike VAT to 6%.
Do you intend to purchase an e-bike soon? Should it be a hiking electric bicycle or an all-arounder e-bike?