Electric Vehicles: Devon
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of a reduction of the VAT costs of public EV chargers on the take-up of EV cars in Devon.
Answered by Dan Tomlinson
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services.
The supply of energy for domestic use attracts the reduced rate of VAT (5 per cent). Whilst this relief was not designed or introduced 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. Public EV charging, on the other hand, is subject to the standard rate of VAT (twenty per cent). This matches the VAT treatment of petrol and diesel, as well as all non-domestic electricity.
The Government will review the cost of public electric vehicle charging, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers. Terms of Reference for the review will be set out in due course, and the review will report later in 2026.
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