Thank you for contacting me about VAT on energy from public electric vehicle chargers and the tax regime for electric company cars.
The use of electric vehicle charging points is becoming more common in public places and I am aware that HMRC has received requests from businesses and business representatives to clarify the rules in specific cases, and in particular to confirm the VAT status of electric vehicle charging at charging points in public places.
There is a reduced rate of VAT for supplies of small quantities of electricity, known as ‘de minimis’. The de minimis provision does not apply to supplies of electric vehicle charging at charging points in public places. This is because these supplies are made at various places such as car parks, petrol stations and on-street parking, not to a person’s house or building.
Any decision to modify our tax regime is a matter for the Treasury and careful consideration will be given to any proposed amendments to current VAT rates. I understand that the Government keeps all taxes under review, including VAT. I shall be following the developments on this issue closely, and I will ensure my colleagues at the Treasury are aware of the strength of feeling on this issue.
Company Cars
I appreciate concerns relating to the future tax environment for company cars and I have conveyed your thoughts to my colleagues at the Treasury, who assure me that all elements of taxation, including the tax treatment of certain employment benefits by HMRC, are kept under review and would likely be considered before the next budget.
Thank you again for taking the time to contact me.
Craig Whittaker MP
September 2022