On 14 January 2026, the French Tax Authorities issued a clarification on how the VAT reverse charge applies to the resale of electricity and gas.
In short, when energy is sold to a business acting as a reseller, the supplier does not charge VAT. The reseller accounts for the VAT itself through its VAT return. This mechanism is widely used in the energy sector to reduce fraud and secure transactions.
The key takeaway from this new ruling is practical and reassuring. The reverse charge remains applicable even if the reseller consumes a small amount of energy for technical purposes: for example to operate charging infrastructure or to absorb unavoidable network losses. As long as this self-consumption remains marginal, it does not jeopardize the reseller status and does not trigger VAT being charged by the supplier.
For energy operators, this brings welcome clarity. Businesses purchasing electricity or gas for resale can continue to apply the reverse charge with confidence, without the risk that limited technical consumption could invalidate their VAT treatment.
Beyond the technical aspects, this clarification reduces VAT risk and provides greater predictability in day-to-day operations. A key point for companies operating complex energy infrastructures where a degree of self-consumption is simply unavoidable.
