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Economy

EZ-Charge Advocates for VAT Reduction on Public EV Charging to Boost Electric Vehicle Adoption

today09/01/2024 39

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In a move to promote electric vehicle (EV) adoption, Oxfordshire-based charge point operator EZ-Charge urges the UK government to cut VAT on public EV charging. The aim is to create an incentive for more drivers to transition to electric vehicles.

Tackling VAT Disparity

Public EV charging is currently subject to a 20% VAT, which is notably higher than the 5% rate for drivers who charge at home. EZ-Charge argues that this discrepancy could be a deterrent for potential EV adopters.

Philip Shadbolt OBE, the founder and CEO of EZ-Charge, emphasized the need for action, saying: “We are in the thick of a climate emergency and a cost-of-living crisis, so it’s the right thing to do. Clean motoring technology is crucial to meeting the UK’s climate goals and we must be bolder and move faster with more measures to encourage people to change their behaviour and switch to EVs. Removing as many barriers to entry as possible is key to making it easier for people to switch. Parity in VAT between home and public charging would create a fairer landscape and help continue growth of the sector.”

The Rising Trend in EV Sales

The Society of Motor Manufacturers and Traders’ annual figures have shown a significant increase in the sales of battery electric vehicles, with an increase of almost 50,000 in 2023 compared to the previous year.

In response to this trend, Mr. Shadbolt OBE added: “Many electric vehicle drivers charge at public charging hubs and it’s vital the UK makes owning an EV as attractive as possible. More and more drivers are choosing to go electric, reflecting a national trend in what has been a landmark year for the UK, with more than 50,000 public chargers now installed. With increased support 2024 can be the year to take it to the next level.”

EZ-Charge’s Role and Vision

EZ-Charge, based in Bicester, Oxfordshire, operates Park & Charge Oxfordshire, one of the UK’s largest regional public charging networks. The company is also noted for developing one of the market’s most advanced software systems for live access to data from its chargers.

The ‘De Minimis’ Provision and Public Charging

The ‘de minimis’ provision, which allows for a reduced VAT rate, currently does not apply to public charging because it is not supplied to a single residence. This exclusion is a point of contention for EZ-Charge, as it seeks a more equitable charging landscape across the UK.

Written by: Hamish Law

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