Chargepoint operator Fastned has teamed up with Ginny Buckley from Electrifying.com to call on the UK Government to level the playing field on VAT for EV charging.
Changes to VAT on electric vehicle charging which come into force today (1 October) will deepen the UK’s “driveway divide”, as VAT on home energy falls from 5% to 0% across England, Scotland and Wales, but public charging remains at 20%.
It is estimated the 20% VAT difference for public charging is as much as £270 per driver over the course of a year.
New research commissioned by Fastned has found that more than two thirds (68%) of the population stating that this disparity is unfair. In addition, seven in ten (70%) drivers said paying extra each year because they cannot charge at home would make them less likely to buy an EV – but reducing the disparity could encourage a switch.
Among drivers who do not currently own a fully electric vehicle, 57% say cutting VAT on public charging to 0% in England, Scotland and Wales, would make them more likely to consider buying an EV.
Three in five (61%) UK drivers said they weren’t aware of the VAT difference and two thirds (68%) said they felt it was unfair and penalised those without driveways. As a result, six in ten (60%) drivers say they would support government action to bring public charging VAT down to 0%.
Fastned is offering a free £25 charging credit today at all its UK hubs to highlight the issue, approximately equivalent to the average cost of a public charging session. To claim the credit, drivers need to use the code VAT2026 in the Fastned app.
The latest SMMT figures for car sales shows that pure electric vehicles now make up 30% of all new car sales, but the research also reveals that this VAT disparity could become a significant barrier to EV adoption.
Ginny Buckley, Founder and Editor-in-Chief of Electrifying.com, said:
“By cutting VAT on electricity for EV owners who can charge at home, while continuing to charge 20% VAT on public charging, the Government is driving the transition to electric with one foot on the accelerator and the other on the brake – and any driver will tell you that you don’t get very far doing that.
“Public charging isn’t a luxury – it’s essential infrastructure, and millions of drivers are being punished at the plug with higher prices simply because they don’t have a driveway. That’s why I’ve teamed up with Fastned to call on the Government to end this unfair driveway divide and make charging fair for everyone.”
Tom Hurst, UK Country Director at Fastned, said:
“There is already a driveway divide between electric vehicle users who can charge at home and those who can’t, which risks making the switch to electric harder for millions of people. Today’s VAT change makes this divide even more striking.
“An electric car should be an option for everyone, regardless of whether you have a driveway, which is why, through our ‘Fastned is MY driveway’ campaign, we’re turning our network into a nationwide driveway for EV drivers and calling on the Government to level the playing field by bringing VAT on public charging down to zero.”
Image courtesy of Fastned
