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HMRC has misfired on electric car VAT rules, opinion

Does HMRC’s new VAT policy on the costs of charging electric vehicles (EVs) stack up with the government’s wider environmental goals?

Will the tax incentive to charge vehicles at home further increase the pressure on the already overloaded electricity grid?

HMRC has published a brief explaining the VAT position of charging electric vehicles and business’ entitlement to recover VAT on the cost.

While the clarification is helpful, HMRC seems to have missed an opportunity to update the VAT system to encourage further take up of electric vehicles, an important part of the government’s broader environmental agenda.



VAT news
VAT news