Two questions get asked together and have almost nothing in common. Whether a business can reclaim the VAT on a car it buys is a question about the block on cars, and the answer is usually no regardless of what powers it. How much VAT is on a used car is a question about the margin scheme, and the answer is that it is often charged on the dealer's margin rather than the price.
Electric or not, a car is a car
VAT on a car bought by a business is normally blocked from recovery where there is any private use, and HMRC's test is strict: the car has to be unavailable for private use, not merely unused for it, which in practice excludes almost every car that goes home at night. Being electric changes none of that. What differs around electric cars is elsewhere in the tax system, in capital allowances and benefit-in-kind rates, and those are Corporation Tax and PAYE questions rather than VAT ones.
Where the VAT usually is recoverable
Leasing rather than buying: VAT on a leased car with private use is normally recoverable at 50%, which is a genuine difference from an outright purchase. Commercial vehicles are not cars for this purpose, so a van used for the business is generally fully recoverable. And charging: VAT on electricity used for business mileage follows the ordinary rules, with the domestic supply and the workplace supply treated differently, which is worth reading the current guidance on rather than assuming.
Used cars and the margin scheme
A dealer selling a second-hand car bought from someone who could not charge VAT, typically a private individual, will usually use a margin scheme: VAT is accounted for on the difference between what they paid and what they sold it for, not on the whole selling price. The practical consequence for a buying business is that the invoice will not show a VAT amount to reclaim, because under a margin scheme it cannot. There is nothing wrong with the invoice; there is simply no input tax on it.
Questions people ask about vat on electric cars
Can a business reclaim VAT on an electric car?
Normally no, on the same basis as any other car: recovery is blocked where there is private use, and being electric does not change the test.
Is VAT recoverable on a leased car?
Normally 50% of the VAT on the lease charges where there is private use, which is a real difference from buying the car outright.
Why is there no VAT to reclaim on a used car?
Because the dealer is probably using a margin scheme, where VAT is accounted for on their margin rather than the selling price, so the invoice shows no reclaimable VAT amount.