Motor Vehicles: Charging Points

(asked on 24th January 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the existing tax regime in respect of electricity consumption for electric vehicle charging.


Answered by
Helen Whately Portrait
Helen Whately
Minister of State (Department of Health and Social Care)
This question was answered on 31st January 2022

The Government has no plans to review the current rate of VAT applied to electric vehicle charging (EV).

In order to keep costs down for families, the supply of electricity for domestic use, including the consumption for electric vehicles charging at home, attracts the reduced rate of VAT (five per cent). However, electricity supplied at EV charging points in public places is subject to the standard rate of VAT (twenty per cent).

HMRC is currently reviewing the way in which businesses are able to reclaim the VAT incurred for the charging of electric vehicles. As part of this, VAT Notice 700/64 (Motoring Expenses) was updated on 6 January to provide further clarification. The review is ongoing and will conclude later this year.

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