Electric vehicle charging VAT rates clarified by HMRC

HMRC has clarified the tax policy concerning the Electric vehicle charging VAT rates via public charge points and at home.

Today HMRC has released a VAT Brief stating that the standard rate of VAT (20%) will apply to charging electric vehicles (EVs) at public charging points. The Brief also confirms that the ‘de minimis’ provisions – which allow for a reduced rate of VAT of 5% to be charged – does now not apply to public charging. This is extremely disappointing and immediately increases the cost to InstaVolt by 15% which we have to reluctantly pass onto our customers.

InstaVolt CEO issues statement in response to HMRC VAT Brief – 25 May 2021

HMRC says that supplies of EV charging through charge points in public places are charged at the standard rate of VAT. There is no exemption or relief that reduces the rate of VAT charged. This, says HMRC, is because these supplies are made at various places such as car parks, petrol stations and on-street parking, not to a person’s house or building.

HMRC clarifies VAT treatment for charging electric vehicles – Fleet news – 27 May 2021

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