VAT increase on public chargers

[davidmc]

Looks like VAT has been increased on public EV chargers.

20% now

Was 5%

Instavolt have already confirmed their increase from 35p to 40p per kw

Link here. InstaVolt CEO issues statement in response to HMRC VAT Brief – 25 May 2021 | Instavolt

 

[Burley]

Tom Callow from BP Pulse has tweeted about this, 30 minutes ago. He states it has not been increased and remains at 20%, as it always was. I think this is a peculiarity of Instavolt.

EDIT - I think InstaVolt were claiming it as a service and not VAT per unit supplied? I think this is also BP’s way of pointing out their prices are not increasing and the difference is quite significant

Anyone know what VAT rate IONITY have been applying? Adding 15% to theirs would be pushing £1 / kWh..

 

[davidmc]

Tom Callow from BP Pulse has tweeted about this, 30 minutes ago. He states it has not been increased and remains at 20%, as it always was. I think this is a peculiarity of Instavolt.

Your right, gov website is just clarifying the VAT on public chargers. 5% seems to be on homes or usage of less than 1000kwh per month.

 

[NorfolkMustard]

Ionity were already charging 20% too. Found an old invoice

 

[Peter 224]

VAT on Electricity supplied to your home is 5%.
No surprise it is normal rate for public chargers.
Hmm.. what happens on free electricity, such as Tesco?

 

[NewbieT]

Even if just a clarification, I bet anyone without off-street parking feels screwed over by this setup.

 

[NorfolkMustard]

Shell Recharge/NewMotion are also currently charging 5% VAT

 

[Country Boy]

V

VAT on Electricity supplied to your home is 5%.
No surprise it is normal rate for public chargers.
Hmm.. what happens on free electricity, such as Tesco?

It is a value ADDED tax, When there is no charge, there is no tax! Since the electricity is being bought by a business, they don't pay VAT (or more accurately, it can be claimed back). Since it is not being sold, there is no VAT to pay..

 

[Jason71]

Did not know this. So in addition to people able to afford off street parking getting lower fuel price they also get to pay less tax. Genius. The transition to EVs is really not going to be good for the less well off

 

[Jason71]

Do you think there would be enough support for a gov uk petition?
Just does not make sense to have a regressive tax on fuel

 

[Billbrown1982]

Wouldn't stand a chance IMO.

They will need to cover the shortfall from fossil eventually. About 72% of what we pay at the pumps (used to pay) was tax anyway so they will be looking for ways to recoup that loss as more people shift across to EV's.

 

[Jason71]

Wouldn't stand a chance IMO.

They will need to cover the shortfall from fossil eventually. About 72% of what we pay at the pumps (used to pay) was tax anyway so they will be looking for ways to recoup that loss as more people shift across to EV's.

Yes we need to move to road pricing so those who do the miles pay the tax. Not those who don't have a drive

 

[imstitch]

Is this going to increase the supercharger fees?

 

[gangzoom]

Even if just a clarification, I bet anyone without off-street parking feels screwed over by this setup.

Don't worry it'll be coming to domestic supplies soon......

 

[MrBadger]

Don't worry it'll be coming to domestic supplies soon......

Since they cannot know what you use each electron for, I very much doubt it.

 

[nxsynjs]

Since they cannot know what you use each electron for, I very much doubt it.

Then they'll just do every electron...

 

[SR-Plus]

Is this going to increase the supercharger fees?

I wonder if this is the reason why some super chargers have increased in price from 24p to 29p.

 

[MrBadger]

That would be 27 or 28p, or if we are doing fuel pump pricing, 27.42p

 

[NewbieT]

Is this going to increase the supercharger fees?

Nope. Superchargers are already charging 20% VAT

 

[davidmc]

Is this going to increase the supercharger fees?

Tesla already charge 20% VAT so the change by them not long ago was something else

Snapshot of invoice from last year