UK Tribunal Backs 5% VAT Rate for Public EV Charging

On February 26, 2026, the First-Tier Tribunal (FTT) published its ruling in the case between Charge My Street, a UK-based social enterprise that installs and operates community EV chargepoints, and HMRC. The dispute centered on the applicable VAT rate to the community-based EV charging model. Although the FTT's decision might be further challenged, the initial message it sends is significant and, if confirmed, may be among the most notable decisions for the industry.

Facts of the Case and FTTs Decision

Charge My Street initially applied the 20% standard VAT rate to its supplies of electricity through its charging points. However, in 2023, it argued that the 5% reduced rate should have applied instead and therefore submitted a claim for repayment to HMRC. In September 2023, HMRC accepted the company’s claim and credited it with the amount of VAT it said had been overpaid.

Shortly after, the company asked HMRC for a formal ruling on the correct VAT treatment of those supplies. Surprisingly, in February 2024, HMRC issued a decision that the standard VAT rate applies to electricity supplied through public EV charging points, prompting Charge My Street to appeal in March 2024. The situation further escalated in June 2024, when HMRC issued a VAT assessment requiring the company to repay the previously refunded amount. The main HMRC's argument was that the repayment was made in error.

This led to another company's appeal in June 2024, which resulted in a procedure before the FTT. The FTT stated that its task was to interpret relevant provisions and determine whether electricity supplied at public EV charging points qualifies for a reduced VAT treatment. Additionally, the FTT noted that the disagreement mainly concerns three issues: where the electricity is supplied, how the consumption threshold should be measured, and who the actual recipient of the supply is.

After carefully examining all the facts and evidence and providing an in-depth analysis of applicable provisions, the FTT ruled that Charge My Streets' EV charging model qualifies for the reduced 5% VAT rate. Moreover, the FTT determined that where electricity is supplied at a public charge point and does not exceed 1,000kWh per customer per month at a specific location, it can be treated as domestic use, which is subject to a reduced VAT rate.

Conclusion

Even though this ruling represents a big win for Charge My Street, lowering the cost of charging for drivers using the company's network, HMRC still has time to appeal the decision. Nonetheless, if HMRC decides not to appeal, the implication would be that EV charging in public places would be subject to the 5% VAT rate, and that drivers may be able to reclaim tax paid on public chargers in recent years.

Source: UK First-Tier Tribunal Tax Chamber - Charge My Street Limited v The Commissioners for HMRC