A majority of UK motorists have called for the 20% VAT rate on public electric vehicle (EV) charging to be scrapped, according to research from Venson Automotive Solutions.
61% of drivers supported eliminating the higher VAT rate entirely, while a further 57% would prefer a reduced and standardised rate in line with home charging, which is taxed at just 5%.
The findings came as MPs prepare to debate a private member’s bill proposing a reduction in VAT on public EV charging.
Data cited in the report showed that charging an EV at home during off-peak hours can cost as little as 10p per kWh, compared to 55p per kWh at a standard public charging point – an increase of 450%.
The cost disparity rose to 690% when comparing home charging to rapid public chargers.
From 1st April 2025, owners of electric, low, or zero-emission vehicles will face the same VED charges as those driving petrol and diesel vehicles.
The standard annual VED will increase from £190 to £195, while newly registered EVs will incur a first-year rate of £10.
Vehicles with a list price above £40,000 will remain subject to the £425 annual surcharge, affecting many higher-end EVs.
Venson’s research found that 76% of respondents believe there is insufficient access to on-street residential charging.
Simon Staton, client management director at Venson Automotive Solutions, said: “Businesses are eager to see MPs pass the proposed bill to reduce VAT on public charging.
“A standardised approach to VAT for home and public charging will enable businesses and individuals to make a clearer assessment of the cost of owning an EV, crucial in a constantly challenging economic climate.
“We also look forward to decisions being made following the government’s recent consultation on zero emission vans.
“Actions that help to remove barriers to EV adoption, particularly for 4.25-tonne vehicles, will all help to support organisations transitioning to a greener fleet.”
