A recent VAT case has raised important questions around the correct VAT treatment of public electric vehicle charging.
In Charge My Street Ltd v HMRC [2026], the First-tier Tribunal concluded that supplies of electric vehicle charging at public charging stations could qualify for the reduced rate of VAT at 5%. This contrasts with HMRC’s long-standing position that such supplies should be subject to the standard rate of 20%.
Charge My Street Ltd operated electric vehicle charging points in public locations across the North of England. The company applied the reduced 5% VAT rate on the basis that its supplies fell within the rules for domestic fuel and power.
Under VAT legislation, supplies of electricity for domestic use can qualify for the reduced rate, provided certain conditions are met. One key provision is the ‘de minimis’ rule, which treats supplies of electricity below 1,000 kWh per month as domestic.
The Tribunal found that where charging was supplied to individual users, the level of electricity consumption fell below this threshold. As a result, those supplies qualified for the reduced rate.
This decision challenges the long-standing disparity between VAT treatment for electric vehicle charging at home, which benefits from the reduced rate, and charging at public stations, which has typically been standard-rated.
However, it is important to note that this is a First-tier Tribunal decision and does not set binding precedent. It is widely expected that HMRC will appeal the ruling, and the position may evolve further as the case progresses.
A complex and evolving area of VAT
This case highlights the complexity of VAT, particularly where legislation intersects with emerging technologies and changing consumer behaviour. The correct VAT treatment will depend on the specific facts of each supply, including how the electricity is delivered and measured.
At A&C Chartered Accountants, we are monitoring developments in this area closely. Businesses involved in electric vehicle infrastructure, or those uncertain about the VAT treatment of their supplies, should ensure their approach is robust and well-supported.
If you would like to review your VAT position or discuss how these developments may affect your business, we would be happy to assist.