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<p>In order to keep costs down for families, the supply of electricity for domestic
use, including charging an electric vehicle (EV) at home, attracts the reduced rate
of VAT (five per cent). However, electricity supplied at EV charging points in public
places is subject to the standard rate of VAT (twenty per cent).</p><p> </p><p>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 charging at home.</p><p>
</p><p>Introducing a VAT relief for public EV charging to match the VAT treatment
of domestic fuel and power would impose additional pressure on the public finances,
to which VAT makes a significant contribution. VAT is the UK’s third largest tax forecast
to raise £157 billion in 2022/23, helping to fund key spending priorities such as
important public services, including the NHS, education and defence.</p><p> </p><p>The
Government is committed to supporting the transition to zero emission vehicles to
help the UK meet its net zero obligations. The Government has committed £2.5 billion
since 2020 to support the transition to zero emission vehicles, which funds targeted
vehicle incentives and the rollout of charging infrastructure.</p>
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