Drivers back lower VAT rate on public EV charging
New research by Venson Automotive Solutions has revealed that 61% of motorists want the 20% rate of VAT on public EV charging to be eliminated.
VAT on charging at home is just five per cent.
The research also found that 57% of drivers back a standard, lower rate of VAT on public charging.
In addition to the current 20% VAT cost on public charging, electricity supply charges vary hugely too. According to Kerbo Charge when comparing an off-peak home charging rate of 10p kWh vs a public charging station at 55p kWh there is a 450% increase in cost. The difference grows significantly when comparing home charging to a rapid public charging station, with a difference of 690%.
Alongside cost concerns, 76% of drivers Venson surveyed said they don’t believe there is enough access to on-street residential charging – a constant obstacle to EV adoption that has yet to be overcome by local government and commercial charging providers.
Simon Staton, client management director of Venson Automotive Solutions said: “Businesses are eager to see MPs pass the proposed bill to reduce VAT on public charging. A standardised approach to VAT for home and public charging will enable businesses and individuals to make a clearer assessment of the cost of owning an EV, crucial in a constantly challenging economic climate.
“We also look forward to decisions being made following the government’s recent consultation on zero emission vans. Actions that help to remove barriers to EV adoption, particularly for 4.25-tonne vehicles, will all help to support organisations transitioning to a greener fleet.”
