VAT & EV Charging

The VAT treatment of electricity supplied at public electric vehicle charge points has been unsettled for some time, and a recent First-tier Tribunal decision has sharpened the debate considerably.

HMRC's long-standing position is that charging an electric vehicle at a public charge point is a standard rated supply. The basis for this is that the reduced rate for domestic fuel and power - which applies to supplies of electricity not exceeding 1,000 kWh per calendar month - requires the supply to be made to domestic premises, and HMRC has consistently maintained that public charge point locations do not qualify.

In Charge My Street Ltd v HMRC, the First-tier Tribunal disagreed. The tribunal found that the reduced rate provision does not require the premises to be owned or controlled by the person receiving the supply, nor does it restrict the meaning of premises to buildings. On that analysis, an identifiable location such as a public car park could fall within the reduced rate, provided the supply to an identified person does not exceed the 1,000 kWh monthly threshold.

This is a meaningful finding. If it stands, it would have significant implications for charge point operators currently accounting for VAT at the standard rate, and potentially for the pricing of public EV charging more broadly.

HMRC has applied for permission to appeal, and has confirmed through Revenue and Customs Brief 4 (2026) [Link here https://lnkd.in/enZKKsuT] that its policy position is unchanged pending the outcome. Standard rating remains HMRC's required treatment for now.

Businesses operating public charge points, or advising those who do, should monitor this closely. The appeal outcome will determine whether the tribunal's reasoning is endorsed at a higher level - and with it, whether a rate correction or protective claim may become relevant.