On the 25th May 2021, HMRC released “Revenue and Customs Brief 7 (2021): VAT liability of charging of electric vehicles” (the “Brief”). The Brief states that the standard rate of VAT (currently 20%) will now apply to charging electric vehicles at public charging points. Outlined in the Brief is the ‘de minimis provision' (which allows for a reduced VAT rate of 5% to be charged), however this now does not apply to public charging. Alfa Power is deeply disappointed by this.
Alfa Power has always been at the forefront of innovation within the industry, being the first Charge Point Operator to charge the lower 5% VAT rate to our customers. By doing this we were able to offer a competitive rate of only £0.25p/kWh. Alfa Power always has been, and always will be, committed to offering our customers the best possible service.
Unfortunately, following the Brief, we have no choice but to increase our rate to £0.30p/kWh. This change is solely to cover the VAT increase and will be effective from 10:00 am on Tuesday 1st June, after the long Bank Holiday weekend. Alfa Power would like to emphasise that any customers who are currently using discounted charging rates will continue to do so subject to the VAT increase.