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Electric Vehicles: Charging Points

Question for Treasury

UIN 56444, tabled on 15 October 2021

To ask the Chancellor of the Exchequer, whether he plans to take steps to tackle the discrepancy between the 5 per cent VAT incurred for home charging for electric vehicles and 20 per cent VAT for on-street electric vehicle charging.

Answered on

20 October 2021

Electricity supplied at electric vehicle charging points in public places is subject to the standard rate of VAT (twenty 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 (five per cent).

Expanding the 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.

Answered by

Treasury