UK tax authority to appeal ruling on EV charging VAT

HM Revenue and Customs will appeal a February First-tier Tribunal ruling that would cut VAT on public EV charging from 20% to 5%, matching the domestic rate. Judge Harriet Morgan ruled in favour of non-profit Charge My Street, citing legislation that defines electricity as domestic use if consumption stays below 1,000 kWh per month at a single premises, a threshold Deloitte says individual EV users rarely exceed. The VAT gap currently generates approximately £85 million annually for the Treasury, according to Zapmap data cited by Fleet News.

Why it matters: If the appeal fails, charge point operators may file claims for overpaid VAT covering several years, reshaping revenue models and potentially lowering public charging costs. The case challenges a long-standing disparity between home and public charging rates that has drawn sector criticism.