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is the EV installation charge zero rated for VAT?

is the EV installation charge zero rated for VAT?

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Client has asked whether they have to charge VAT on the installation of an EV charger to one of their customers as the customer is suggesting that the installation charge should be zero rated. Does anybody have any knowledge of this as I have had a look into this but cannot see any reason why this should not be a normal standard rated supply.  

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By gillybean04
25th May 2022 13:41

Why does the customer believe it should be zero rated? I think I know why, but it's a good starting point for these types of query/objection (understanding their position/reasoning).

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Replying to gillybean04:
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By davebrown123
25th May 2022 14:07

Thanks for your response and the customer claimed that they had received 2 other quotes that had zero rated the supply

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VAT
By Jason Croke
25th May 2022 13:52

https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-e...

Short answer, no, you cannot zero rate a. EV charger. See para. 2.9 of above link.

I would have thought a busines which specialises in installing these things would know the HMRC notice inside and out on this.

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Replying to Jason Croke:
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By gillybean04
25th May 2022 13:56

I still have a tendency to hiss and cross my fingers whenever VAT is mentioned. So, thank you for confirming I may actually have some hope of navigating it's perilous waters one day!

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By gillybean04
25th May 2022 13:54

I predict the customer has seen that the VAT rate for energy saving materials has been zero rated from this year and has wrongly classed the charger as energy saving.

Even if the VAT act didn't specify what ESM are, I don't think a charger could ever be energy saving. It's purpose is to use energy, not save it. An EV may be cleaner energy, but it is not energy saving.

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Replying to gillybean04:
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By Hugo Fair
25th May 2022 16:36

Agree ... but this is the problem when political soundbites get all the headlines (and vague words/phrases are used).
For instance the list of qualifying ESMs is still being expanded ... but it currently includes solar panels, which many people simply think of as 'delivering electricity to my house'. So an EV charger that 'delivers electricity to my car' doesn't strike them as very different.
Of course there's a world of difference between electricity generation and its delivery ... but then again the point of the solar panels is to swap consumption to a more eco-friendly source, and so does the EV charger (compared to petrol).

As I said, I agree with you ... but it's not that surprising that confusion reigns.

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Replying to Hugo Fair:
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By gillybean04
25th May 2022 19:13

Well, you could say it was so unsurprising that it's what led my prediction!

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By DKB-Sheffield
25th May 2022 17:04

Out of interest, and you've almost certainly checked but, who is the supply to? You don't state who the customer is.

EV charging points to new build residential, or EV charging points as part of a DRC supply may explain (albeit possibly not wholly justify) the treatment in the quote by the other suppliers.

I am certain you and your client are correct - based on the facts you will both know of the case (which are, alas unknown to us). However, there is absolutely no certainty in my mind, based on information given, that the other suppliers are zero-rating based solely on the premise of ESM (as opposed to applying some other rationale - rightly or wrongly).

On the question of ESM alone, it's a 'no' from me. However, other factors may be at play that would explain otherwise.

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