Electric Vehicles: VAT
(asked on 9th July 2020) - View Source
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have, if any, to extend the reduction in VAT announced on 8 July to the purchase of electric vehicles.
This question was answered on 20th July 2020
VAT is a broad-based tax on consumption and the standard rate of 20 per cent applies to most goods and services. As was acknowledged at Budget 2020, VAT makes a significant contribution towards the public finances and helps fund the Government's spending priorities including health, schools, and defence.
Although the Government keeps all taxes under review, there are no plans to change the VAT treatment of electric vehicles at present.