- A UK tribunal ruled that public EV charging can qualify for the reduced 5% VAT rate if usage is under 1,000kWh per customer per month at a specific location.
- This overturns HMRC’s previous stance that public charging must always be taxed at 20% VAT.
- The decision could lower public charging costs and may influence broader policy, though HMRC may appeal and the ruling may only apply in limited cases.
- The UK Treasury is considering reducing VAT on public EV charging to 5% to encourage EV adoption ahead of a proposed pay-per-mile levy in 2028.
- The move aims to address higher costs for drivers without home chargers and to support continued growth in EV uptake.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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