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<p>In order to keep costs down for families, the supply of electricity for domestic
use attracts the reduced rate of VAT (five per cent).</p><p> </p><p>Electricity supplied
at EV charging points in public places is subject to the standard rate of VAT (twenty
per cent). The Government has not specifically introduced a reduced rate for charging
EVs at home. However, the practical challenges of differentiating between the electricity
used at home for general domestic purposes, and electricity used to charge EVs currently
mean that the reduced rate is effectively being applied to EV home-charging.</p><p>
</p><p>Applying the reduced rate of VAT to electricity supplied at EV charging points
in public places would come at a cost. VAT makes a significant contribution towards
the public finances, raising around £130 billion in 2019/20, and helps fund the Government's
priorities including the NHS, schools, and defence. Any loss in tax revenue would
have to be balanced by a reduction in public spending, increased borrowing or increased
taxation elsewhere.</p><p> </p><p>The Government has no current plans to review the
current rate of VAT applied to EV charging.</p>
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