Battery charging as electricity generation under the electricity tax manufacturer privilege

The Federal Court of Tax and Labor Matters (BFH) rejected the taxpayer's appeal, affirming the lower court's assessment that the company did not qualify for the manufacturer privilege under § 9 Abs. 1 Nr. 2 StromStG and thus remained liable for electricity tax. The dispute concerned whether the charging of batteries, which involves converting alternating current to direct current, constitutes the "generation" of electricity within the meaning of the Electricity Tax Act. The court held that while the technical process involves conversion, it does not amount to the initial production or generation of electrical energy from other energy sources, which is the requisite condition for claiming the statutory exemption reserved for manufacturers; consequently, the taxpayer is treated as a consumer rather than a producer.