A first-tier tribunal ruled that public EV charging should be subject to the same 5% VAT as home charging – potentially cutting costs for drivers across the UK.
Charge my Street, an on-street charging specialist, successfully argued against the current 20% VAT on public charging. The company based its case on advice from Deloitte, which highlighted existing VAT law stating that energy supplies under 1,000kWh to any person at premises count as “domestic” supply.
The tribunal backed Charge my Street’s position in what Deloitte’s VAT specialist called a “thumping victory.”
Oliver Jarratt, director and VAT specialist for Deloitte, said even drivers who always use the same public charger would find it “nigh-on impossible” to exceed 1,000kWh monthly.
That limit equals fully charging a new 108kWh BMW iX3 from empty more than nine times. With its 500-mile range, that’s over 4,000 miles of driving per month.
Industry Impact
Daniel Heery, director at Charge My Street, said the ruling supports affordable local EV charging across UK communities.
“This is a hugely important outcome – not just for Charge My Street, but for communities across the UK who rely on affordable, local EV charging. Our mission has always been to make neighbourhood charging accessible to everyone, and today’s ruling supports that mission.”
The decision contradicted HMRC’s previous position. Tax officials had argued the reduced rate didn’t apply to public charging because locations weren’t fixed points delivering to single users where supply rates could be calculated.
HMRC has 56 days to appeal and said it’s “carefully considering” the ruling.
The immediate impact on charging costs remains unclear. While the legal precedent is set, widespread implementation depends on HMRC’s response and potential appeals process.
Wider Implications
The charging industry has consistently argued that higher VAT on public charging creates unfair barriers to EV adoption.
Motoring organizations and House of Lords members have previously backed calls to align public and private charging tax rates. The Treasury was reportedly considering these calls in January amid concerns over the incoming 3p-per-mile EV tax starting in 2028.
Russell Olive, UK director at charging management specialist Vaylens, said the current system’s structural flaws penalize drivers without home charging access.
“Charging EV drivers more tax simply because they can’t charge at home has always been a structural flaw in the system. If this tribunal ruling ultimately leads to change, it would remove a clear imbalance for fleets and drivers without access to home charging.”
The ruling could significantly impact the estimated 40% of UK households without off-street parking who rely entirely on public charging infrastructure.
Jarratt described the judgment as “clear, unequivocal and a thumping victory” with implications extending beyond Charge my Street to the entire EV charging industry.
