Venson Automotive Solutions is backing calls to reduce the VAT rate for charging an electric vehicle (EV) on the public network to 5%, in line with home charging costs.
New research by the vehicle leasing company reveals that almost two-thirds (61%) of motorists back proposals for the current 20% VAT rate on EV public charging to be cut to 5%.
MPs are preparing to debate proposed changes to VAT rates on EV charging, with a private member's bill seeking to exempt public charging from VAT entirely.
Venson’s research suggests that, if VAT for public charging is not cut to 5%, more than half (57%) of drivers would like to see a standardised, lower VAT rate introduced.
In addition to the current 20% VAT cost on public charging, electricity supply charges vary hugely too, says Venson.
According to Kerbo Charge, when comparing an off-peak home charging rate of 10p kWh versus a public charger at 55p kWh, there is a 450% increase in cost.
The difference grows significantly when comparing home charging to a rapid public charging station, with a difference of 690%.
Alongside cost concerns, 76% of drivers Venson surveyed said they don’t believe there is enough access to on-street residential charging – a constant obstacle to EV adoption that has yet to be overcome by local government and commercial charging providers.
Simon Staton, client management director of 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.”
The AA estimates that EV drivers could save £4.80 per charge at ultra-rapid chargers if VAT was reduced to match the percentage rate paid to charge your vehicle at home.
Find out from Fleet News four ways to optimise workplace electric vehicle charging infrastructure.
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Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
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