Almost half of drivers without electric vehicles say they would make the switch sooner if VAT on public charging matched the 5% rate applied to home charging.
Currently, public charging is taxed at 20%, creating a clear disparity for those unable to charge at home—often renters, flat-dwellers or city residents.
The upcoming parliamentary debate will consider whether to address this imbalance.
But research from GRIDSERVE reveals the strongest support for VAT parity among younger drivers, with 84% of 18–24-year-olds and 76% of 25–34-year-olds saying they’d be more likely to go electric if the VAT rate were equalised.
In London, where off-street parking is scarce, 77% of residents said a lower rate would influence their decision to switch.
Daniel Kunkel, CEO at GRIDSERVE, said: “Removing VAT from public charging would be a significant move towards levelling the playing field and making EV ownership easier for everyone, no matter where they live. The current disparity between the 20% VAT on public EV charging and the 5% on home charging puts a disproportionate financial burden on those without home charging facilities, which could affect more lower-income households.”
Data from Zapmap shows that public-only EV drivers spend £1,690 annually on charging.
Reducing VAT to 5% could save them around £211 per year—helping to address the financial inequity and supporting wider adoption.
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