Electric Vehicles: Charging Points
The question
To ask the Chancellor of the Exchequer, what discussions he has had with the Chancellor of the Exchequer on the potential merits of reducing the level of VAT charged for the supply of electricity at electric vehicle charging points.
Answered by James Murray
The supply of energy for domestic use, including domestic EV charging, attracts the reduced rate of VAT. (5 per cent).
Public EV charging is subject to the standard rate of VAT (20 per cent). This matches the VAT treatment of petrol and diesel, as well as all non-domestic electricity.
Whilst the relief for domestic energy was not designed for charging EVs at home, it applies for all uses of domestic energy, as it is not easy for energy companies to distinguish between electricity used to charge an EV and electricity used for general domestic purposes.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
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