HM Revenue & Customs has clarified the tax treatment of electricity supplied through public and workplace electric vehicle chargers. Its brief was published on 28th October, with the legislation taking effect on 1st November.
Current position
Public chargers and chargers available to employees or contractors at work are treated as non-domestic supplies. HMRC says standard-rate VAT applies, subject to separate provisions for charities using electricity for non-business purposes.
The legislation also treats these supplies as non-domestic for Climate Change Levy purposes.
Why this matters
Council, health and education estates operating charging facilities need to distinguish these supplies from residential electricity. Charging through a home's general supply, or qualifying dedicated residential equipment, may still receive relief.
Next steps
Operators should review the official brief and VAT Notice 701/19 with their advisers. This is an account of HMRC's published position, rather than a calculation of an individual site's liability.