Public charging VAT rates a barrier to EV adoption
Europcar Mobility Group UK has accused the government of ‘mixed messaging’ after the HMRC said it would appeal a reduction in public charging VAT rates.
A court ruled that drivers who charge their electric cars on the public network should pay the five per cent VAT rate that is applied to home charging instead of the current 20% rate.
However, the HMRC has said it will appeal the judgement.
Tom Middleditch, head of B2B marketing and sustainability spokesperson, Europcar Mobility Group UK, said: “HMRC’s decision to appeal the ruling on public EV charging VAT is yet another mixed message from government on net zero. It seems wholly unfair that motorists who do not have access to home charging have to pay 20% VAT.”
Rental sector
Middleditch continued: “This issue is particularly acute in the vehicle rental sector. Unlike private motorists and businesses that have made a long-term commitment to electric vehicle ownership, which probably means they can charge overnight at home, renters are almost entirely reliant on the public charging network.
“They are penalised simply because of how they travel. The four-fold VAT disparity between home and public charging is not just unfair; it is a structural barrier to EV adoption.
“At Europcar, we want to help our customers choose electric with confidence, but that confidence is undermined when the cost of public charging remains so disproportionately high. The government cannot credibly champion electrification while simultaneously fighting in court to maintain a tax regime that makes public charging more expensive than at home.”
