Light at the end of the tunnel re VAT and EV charging

[5teep]

This article about HMRC losing a case against Charge My Street Limited (CMS)

https://www.accountingweb.co.uk/tax/hmrc-policy/vat-rate-shock-for-hmrc-in-ev-charging-point-case?cm-uuid=[uuid,fallback=]

 

[Bam Bam]

This article about HMRC losing a case against Charge My Street Limited (CMS)

https://www.accountingweb.co.uk/tax/hmrc-policy/vat-rate-shock-for-hmrc-in-ev-charging-point-case?cm-uuid=[uuid,fallback=]

Who knew that it would be HMRC legal incompetence that would lead to this?

Usually their legal incompetence that means that rich people get away without paying their taxes.

 

[Everest]

Whilst this all sounds potentially good for any of us who need to use public chargers, I note that the argument says..

"The crux of the dispute was as to the interpretation of VATA 94 Sch 7A Group 1, which allows a supply of fuel/power to be reduced rate if made for a “qualifying use”. Note 3 states that qualifying use includes domestic use, which note 5(g) confirms includes a supply of electricity “to a person at any premises… not provided at a rate exceeding 1000 kilowatt hours a month”."

What seems to not be mentioned is how CMS Ltd. determine that the use of their chargers is wholly "domestic". Surely business users, especially, gig-economy workers, self-employed and small businesses will surely use the charging facilities too? At our local Fastned charging station there are regularly business vans using the facilities during the working week.

 

[Gomev]

Whilst this all sounds potentially good for any of us who need to use public chargers, I note that the argument says..

"The crux of the dispute was as to the interpretation of VATA 94 Sch 7A Group 1, which allows a supply of fuel/power to be reduced rate if made for a “qualifying use”. Note 3 states that qualifying use includes domestic use, which note 5(g) confirms includes a supply of electricity “to a person at any premises… not provided at a rate exceeding 1000 kilowatt hours a month”."

What seems to not be mentioned is how CMS Ltd. determine that the use of their chargers is wholly "domestic". Surely business users, especially, gig-economy workers, self-employed and small businesses will surely use the charging facilities too? At our local Fastned charging station there are regularly business vans using the facilities during the working week.

The quoted text in your post doesn't say exclusively domestic, it just says 'qualifying use includes domestic use', so could also include other uses. It also says to 'a person at any premises'. Two things there, it says person, so again could be anyone , but also says 'premises'. Is a vehicle a premise ?

I realise I am only interpreting from what you have quoted and so could be badly out of context, my comments are really questions and not disputing your useful info.

 

[5teep]

Gomev is right plus there's a proviso "not more than 1000kwh per month" which also applies.