HMRC will appeal against a court ruling that the 5% ‘domestic’ VAT rate should apply for charging an electric vehicle (EV) on the public network.
Community charge point operator, Charge My Street, had argued against the 20% rate, based on advice from tax experts at Deloitte, with the First-tier tribunal ruling in its favour in February.
The court’s decision gave hope to drivers who rely on public infrastructure – typically those without access to off-street parking – where it is subject to the full 20% rate. Those charging at home pay the domestic electricity charge of just 5% – four times less.
HMRC confirmed to Fleet News that it is appealing the First-tier Tribunal decision, with a spokesperson explaining the Government’s position is that “standard rate VAT applies to electricity supplied through public EV charging infrastructure”.
Further information:
https://www.fleetnews.co.uk/news/hmrc-appealing-court-ruling-on-5-public-charging-vat-rate-for-evs