A tribunal has ruled that VAT charged on public electric vehicle (EV) charging should be reduced to 5%.
The article published by FleetPoint explains that a First-tier Tribunal found that VAT on public EV charging should match the reduced 5% rate that applies to domestic electricity. Currently, drivers charging at home pay 5% VAT, while those using public charge points are typically charged the standard 20% VAT rate.
The case centred around whether electricity supplied at public charging points should be treated in the same way as domestic electricity for VAT purposes. The tribunal ruled in favour of applying the lower 5% rate, arguing that there should not be a disparity between home charging and public charging.
This decision could have significant implications for EV drivers who rely on public charging infrastructure, particularly those without access to home charging. The ruling also raises questions about how HMRC may respond and whether the government will seek to appeal or adjust VAT policy accordingly.
The article highlights that the difference in VAT rates has long been criticised as unfair, especially for drivers living in flats or urban areas who have no option but to use public charging facilities.
It remains to be seen whether the decision will lead to an immediate change in how VAT is applied across public EV charging networks.
DM News Commentary
If this ruling stands, it could be a major win for EV drivers across the UK. For many professional drivers — including private hire, taxi and airport transfer operators access to home charging isn’t always possible. Those drivers often rely on rapid chargers at motorway services or city-based public chargers, where the 20% VAT rate makes every kilowatt-hour more expensive.
A reduction to 5% VAT would narrow the cost gap between home and public charging, potentially making electric vehicles more financially viable for high-mileage drivers.
However, until there is official confirmation from HMRC or legislative changes, drivers should assume current pricing structures remain in place.
From a legal perspective, HMRC typically has up to 56 days from the date the written First-tier Tribunal decision is issued to apply for permission to appeal to the Upper Tribunal. If HMRC does not appeal within that timeframe, the ruling would generally stand for the parties involved. However, it’s important to note that a First-tier Tribunal decision does not automatically change VAT policy nationwide — HMRC would still need to formally update its guidance or legislation would need to be amended before drivers see a permanent, industry-wide reduction to 5% VAT on public EV charging.
Thanks for visiting DM News! If you’ve got a question, story, or anything you’d like to say, head over to DriverMatty.com — I’d love to hear from you! And while you’re there, don’t forget to check out my other websites and social media channels.
