Motorists are likely to see a dramatic drop in costs for recharging an electric vehicle in public places as points widen.
A UK court has ruled that the 5% ‘domestic’ VAT rate should apply for charging an electric vehicle on the public network, instead of the 20% currently paid by drivers.
Community charge point operator, Charge my Street, had protested the 20% rate based on advice from tax experts at Deloitte, who said the domestic 5% rate should apply under existing tax law.
The First-tier Tribunal, which heard the case last October, this week ruled that the 5% rate applies to public EV charging in those circumstances, rejecting arguments put forward by HMRC.
Daniel Heery, director at Charge My Street, said, “This is a hugely important outcome – not just for Charge My Street, but for communities across the UK who rely on affordable, local EV charging.
“Our mission has always been to make neighbourhood charging accessible to everyone, and today’s ruling supports that mission.
“Lower VAT on charging improves fairness and helps accelerate the shift to cleaner transport for all.
“We rely on investment from ordinary EV drivers to extend our charge point network, and this result helps the commercial case for our current share offer.”
Writing on LinkedIn, Jarratt added, “The judgment is clear, unequivocal and a thumping victory for Charge My Street.”
