Electricity: VAT

(asked on 2nd February 2022) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to address the discrepancy between the public charging VAT rate of 20 per cent for electric vehicles and the five per cent domestic VAT rate for electricity.


Answered by
Baroness Penn Portrait
Baroness Penn
Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 10th February 2022

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

Expanding the relief already available would come at a cost to the Exchequer. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing, or increased taxation elsewhere.

The Government keeps all taxes under constant review.

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