Charging Points and Parking: VAT

(asked on 18th February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he made of the potential merit of equalising the VAT regime for (a) residential off-street parking and (b) public charging for electric vehicles.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 23rd February 2022

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

In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the 5 per cent reduced rate of VAT. However, electricity supplied at EV charging points in public places is subject to the standard 20 per cent rate of VAT.

Expanding the existing relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019-20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing, or increased taxation elsewhere.

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