VAT liability of supplies of electricity from public electric vehicle charge points

Our VAT experts are often asked about the VAT liability of supplies of electricity whilst using public electric vehicle charge points.

In simple terms, whilst the charging of vehicles at home will benefit from the domestic VAT rate of 5%, any other charging in a public place will be subject to the standard rate of VAT at 20%. This will include where there are any charges made to employees or third parties by a business.

A recent Tribunal found in the case of Charge my Street Limited that public charging could be at 5% but, as a First Tier Tribunal decision, it is not binding. HMRC disagree and have appealed this decision and the business brief confirms HMRC’s current position. So, this may well change – watch this space.

If you have any queries on this or any other VAT issue, please get in touch.