Electric van tax explained

Fully electric cars are exempt from paying Vehicle Excise Duty, but how does the law apply to electric vans? Read on to find out

Vehicle Excise Duty, or road tax, is something that applies to any vehicle registered for road use. How much tax you have to pay depends on many factors, including if you own a car or a van.

If you own a van, the amount of tax you have to pay also depends on if you own an electric van or a non-electric van. For clarification, a van is a light-goods vehicle with a maximum gross vehicle weight of 3,500kg.

For cars, VED is based on carbon dioxide (CO2) emissions measured from the tailpipe. In short, the more a vehicle pollutes, the more it's taxed.  However, for vans, the law works slightly differently. Instead of a progressive rate, vans are charged a flat rate. The rate is set depending on when your van was built.

New vans are charged at £250 a year, while vans registered between 1 March 2003 and 31 December 2006 pay £140 a year. The same £140 fee also applies for vans registered between 1 January 2009 and 31 December 2010.

Van tax for electric vehicles

If you own a fully electric car, you won’t pay any VED. The same applies for fully electric vans.

This is because the Government has given electric van drivers the same incentives to go green as it has car drivers. This means annual tax for all electric vans is £0.

However, it’s important to note the discount only applies for fully electric vans. Plug-in hybrid vans will still have to pay the annual £250 fee.