In a ruling that could significantly alter the UK’s electric vehicle charging market, the First-Tier Tribunal Tax Chamber has held that public EV charging should be subject to the reduced 5% rate of Value Added Tax (VAT), rather than the 20% standard rate applied by HM Revenue & Customs, Fleetpoint reported.
The judgment, delivered in late February 2026, followed an appeal by community charging operator Charge my Street against HMRC’s interpretation of VAT rules. The case was heard last October, with Charge my Street represented by Sarabjit Singh KC.
HMRC had argued that the reduced VAT rate for electricity supplies under the VAT Act 1994 applied only to domestic supplies to a person’s home or other “premises,” and not to occasional electricity supplied at public charging points.
However, the Tribunal accepted Charge my Street’s argument that the 5% reduced rate already applies to public EV charging under existing law, provided certain conditions are met. It ruled that where electricity supplied at a public charging location does not exceed 1,000 kilowatt hours per customer per month, the supply falls within the reduced-rate provision.
Daniel Barlow, a tax partner at Deloitte who advised Charge my Street, said the Tribunal found that drivers should be charged the 5% reduced VAT rate when using public charging facilities under current UK law.
Charge my Street, a social enterprise that installs and operates community-funded EV charge points, described the outcome as a major victory. Director Daniel Heery said the ruling would benefit communities that depend on affordable local charging and help speed up the shift to cleaner transport.
Industry representatives have also welcomed the decision. Matt Waller, general manager of The Charge Scheme, said the ruling confirmed long-standing arguments that drivers without access to home charging had been disadvantaged by higher VAT on public charging.
HMRC has said it is considering the decision and its next steps. Legal experts have questioned whether an appeal would succeed, given the Tribunal’s firm rejection of HMRC’s interpretation of terms such as “premises” and “rate.”
The ruling has wider policy implications. If the government does not appeal, it will need to update guidance to reflect that the reduced 5% VAT rate applies to qualifying public charging. If an appeal is pursued, uncertainty could continue and potentially affect investment in charging infrastructure.
For drivers, the difference between 20% and 5% VAT could mean lower charging costs at public stations, narrowing the price gap between home and public charging. It remains unclear how quickly operators might adjust prices or whether refunds could be issued where customers were previously charged at the higher rate.
The decision comes as the UK works toward its Net Zero targets, with industry groups arguing that equal VAT treatment for home and public charging is essential to encourage wider adoption of electric vehicles.
The Tribunal’s judgment is being viewed as a significant development in how UK VAT law applies to emerging transport infrastructure, with its long-term impact dependent on the government’s response.
