EV Drivers Pay £85m Extra in VAT Due to Public Charging Costs
Electric vehicle (EV) drivers in the UK will pay an extra £85 million in VAT on public charging in 2025 because public chargers are taxed at 20%, while home electricity use is taxed at 5%.
Industry leaders argue this “pavement tax” unfairly impacts those without home chargers, discouraging EV adoption. Calls to equalize VAT rates have been made by groups like FairCharge and automakers such as Stellantis.
Despite the additional VAT burden, the government continues to freeze fuel duty for petrol and diesel cars, costing £2 billion. Charge point operators say they would pass any VAT reductions to customers, making public charging more affordable. Source https://www.theguardian.com/environment/2025/feb/11/ev-electric-car-drivers-vat-public-chargers-pavement-tax