Standard rate applies to charging of electric vehicles

The standard rate of VAT applies to supplies of electric vehicle charging through charging points in public places HMRC has stated in a new Revenue and Customs Brief.

Sole proprietors can recover the input tax for charging an electric vehicle at home or at other places as long as the charging is for business use.

Employers cannot recover the VAT for employees charging an electric vehicle - which is used for business - at home because the supply is made to the employee and not to the business.

Employees charging a company-provided electric vehicle at the employer’s premises must keep a record of their business and private mileage so that the business can work out the amounts of business use and private use for the vehicle. The business can recover the full amount of VAT for the supply of electricity used to charge the electric vehicle...