Standard or reduced VAT rate due on Charging of Electric Vehicles?

In the UK, the Charging of Electric Vehicles is either due to Standard or Reduced VAT rate.

• Standard VAT rate: Supplies of electric vehicle charging through charging points in public places. There is no exemption or relief that reduces the rate of VAT charged.
• Reduced VAT rate: Supplies of small quantities of electricity, known as ‘de minimis’. The de minimis provision only applies if the supply of electricity is all of the following:
  • ongoing
  • to a person’s house or building
  • less than 1,000 kilowatt hours a month

Sources

• HMRC Policy paper Revenue and Customs Brief 7 (2021): VAT liability of charging of electric vehicles
• Marcus Ward
• Centurion
• RSM
• Am-online.com
• HMRC Guidances – Electric Vehicles: What to keep in mind?

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