UK to appeal against tax ruling cutting VAT on public electric car chargers to 5%
Summary
The UK government will appeal a tax tribunal ruling that says VAT on public electric car chargers should be 5%, not 20%. Currently, electric car drivers pay more VAT at public chargers than at home, and the ruling could lower their costs and encourage more use of electric vehicles.Key Facts
- A London tax tribunal ruled that VAT on public electric car chargers should be 5%, the same as at home.
- The UK tax authority, HM Revenue and Customs, is appealing against this ruling.
- The higher 20% VAT on public chargers adds about £85 million a year in extra tax revenue.
- This extra tax could rise to £315 million by 2030 as electric car use increases.
- About 40% of UK households cannot charge cars at home and rely on public chargers.
- Charge point companies say the current VAT difference makes public charging more expensive and slows the switch from petrol to electric cars.
- If the appeal fails, other operators plan to claim refunds for VAT overpaid in past years.
- The case focuses on how the VAT law defines electricity use for “domestic use” under certain limits.
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