EU to reduce VAT on EVs and assess stronger public procurement targets, leaked electrification strategy shows

A leaked draft of the EU's electrification strategy, seen by EV Infrastructure News and due for publication on 15 or 17 July, commits the European Commission to presenting a framework for reducing VAT on EVs, heat pumps and domestic batteries under the Green VAT initiative targeting 30% electrification by 2030. The Commission will assess stronger zero emissions vehicle uptake targets for public procurement and put forward a recommendation for fiscal and nonfiscal demand side incentives for EV uptake by Q4 2026.

Why it matters: Reduced VAT on EVs and stronger public procurement mandates could accelerate fleet electrification across EU member states, driving demand for charging infrastructure. The Q4 2026 incentive framework may shape how public sector bodies and charge point operators structure their investment cases over the next two years.