MPs will debate the difference between the 20% VAT rate for public electric vehicle (EV) charging and the 5% rate for home charging. Conservative MP Sir Christopher Chope has introduced a private member’s bill proposing a full VAT exemption for public charging.
The 5% VAT rate applies to home charging under an HMRC 'de-minimis' rule for small domestic electricity supplies.
The bill’s second reading, scheduled for 13 June, will be the first opportunity for MPs to discuss it. However, it must pass multiple stages before potentially receiving Royal Assent and becoming law.