The UK First‑Tier Tribunal Tax Chamber ruled that public electric‑vehicle charging supplies qualify for the reduced 5% VAT rate, not the standard 20% rate, if the electricity supplied does not exceed 1,000 kWh per customer per month. The decision, delivered in late February 2026, could lower charging costs and requires HMRC to update guidance if the government does not appeal.
The 5% reduced VAT rate, provided the supply does not exceed 1,000 kWh per customer per month.
Late February 2026.
Electricity supplied must not exceed 1,000 kWh per customer per month.
Lower charging costs at public stations, narrowing the price gap between home and public charging.
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Pinsent Masons · about 20 hours ago
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BusinessGreen · 5 days ago
A UK tax tribunal has ruled that VAT on public electric vehicle charging should be reduced to 5%, matching the rate already applied to home charging. The decision covers charging at service stations, supermarkets and residential streets, replacing the current 20% rate for public chargers.
VatCalc · 5 days ago
A UK First‑tier Tribunal has ruled that public EV charging can qualify for the 5% reduced VAT rate if the supply does not exceed 1,000 kWh per customer per month at a specific location, overturning HMRC’s earlier stance. The decision could lower charging costs and may influence the Treasury’s consideration to cut VAT on public charging to 5% ahead of the 2028 pay‑per‑mile levy. HMRC’s 2021 guidance still applies a 20% rate to public charge points, and the Treasury is reviewing VAT reforms to offset the levy’s impact.
