UK tax tribunal rules 5% VAT rate applies to public EV charging under 1,000 kWh per month

The First-tier Tribunal has ruled that the 5% domestic VAT rate, rather than the standard 20% rate, should apply to public EV charging when a driver uses less than 1,000 kWh per month at a particular premises. The case was brought by community charge point operator Charge my Street, supported by tax advice from Deloitte, which argued that existing VAT law already covered this scenario. HMRC's arguments against the lower rate were rejected by the tribunal, which heard the case in October and published its decision this week.

Why it matters: The ruling could significantly reduce operating costs for CPOs and make public charging more affordable for drivers without home chargers, potentially accelerating EV adoption among those reliant on on street infrastructure. Charge point operators may need to review their VAT accounting and pricing structures to reflect the lower rate for typical usage patterns.