Our practice is getting an increasing number of queries from clients who have bought electric cars which will be used for both business and private purposes. Please could you clarify how to treat input tax recovery on the charging costs for my clients?

A supply of electricity is charged at the standard rate of VAT, other than a supply for domestic use, which is charged at the reduced rate of 5%, and low-level usage in other settings which is ‘deemed’ domestic use, also 5%.

Supplies of electricity from charging points, although small amounts, do not meet the conditions to be deemed domestic use as they are not supplied to a property, and therefore are standard rated.