The decision means that public EV charge point operators may, in some circumstances, be able to charge VAT on supplies of electricity to customers at the reduced rate of 5% instead of the standard rate of 20%. Although the decision might appear relevant only to a narrow group, we consider it could affect any public EV charging supplier, EV infrastructure investor, and consumers using public locations such as car parks for charging.
The case
Charge My Street Limited (“CMSL”) is a community benefit society that operates public EV charging points at locations including residential car parks, village halls, and school and college car parks across the North of England. CMSL argued that its supplies of electricity to EV drivers should attract the reduced rate of VAT at 5% on the basis that those supplies fall within the domestic use provisions. HMRC’s position was that public EV charging is always standard-rated, because these supplies are not made from a person’s home or a building controlled by that person.
The decision
The Tribunal allowed the appeal in principle, in part. It found that the reduced 5% rate of VAT can apply to supplies of electricity made from public EV charge points where the electricity supplied to a customer at the same charge point by the same supplier does not exceed 1,000 kilowatt hours per calendar month. This is the threshold used to deem a supply as being for domestic use for VAT purposes. The Tribunal also found that there is no requirement for the premises to be a building owned or controlled by the customer, meaning that public car parks and similar locations can qualify as identifiable premises to which the reduced rate may apply.
Where supplies were made through third-party app operators rather than directly by CMSL (through its own apps) those third parties were found to be making the supply to the driver and the reduced rate did not apply to these supplies. Analysis turned on whether each operator acted as principal or commission agent, and on the terms of the relevant contracts. This is an important consideration for operators whose customers access charging services via third-party platforms.
CMSL also argued that HMRC's interpretation breached the VAT principle of fiscal neutrality, since a driver charging at home currently pays VAT at 5%, while a driver without off-street parking, charging the same type of vehicle with the same electricity at a public charge point, has had to pay VAT at 20%, even though the underlying supply and consumer need are the same. The Tribunal did not need to decide this point, since it had already found for CMSL, but it recorded the parties' submissions in case they become relevant on any appeal.
HMRC’s response and next steps for businesses
HMRC applied for permission to appeal and, on 12 May 2026 and issued Revenue & Customs Brief 4 (2026), confirming that its position remains unchanged: public EV charging remains standard-rated.
There are reportedly differing views across Government on EV charging VAT policy. The Department for Transport and the Office for Zero Emission Vehicles are said to favour VAT cuts, so that any savings can be passed on to consumers and encourage EV take-up, while HM Treasury's focus is understood to be on the associated impact on tax revenue. Given the expected growth of the EV market and these differing policy priorities, we expect continued litigation in this area.
As the First-tier Tribunal’s decision is not binding on HMRC and is subject to HMRC’s appeal, we recommend that businesses continue to charge VAT at 20% for the time being. However, businesses may wish to consider making protective repayment claims to preserve their position in respect of historic VAT overpaid.
A few points to bear in mind regarding repayment claims: the standard four-year time limit applies to backdated claims, so any claim should be made as soon as possible to maximise potential recovery; HMRC may seek to restrict repayments on unjust enrichment grounds where VAT has been passed on to customers; and HMRC is likely to ask that claims be stayed pending the outcome of the appeal. Any repayment will therefore not be immediate, but lodging a protective claim now can safeguard a business's position through what is expected to be a lengthy period of litigation.
How DWF can help
The VAT position remains uncertain while HMRC’s potential appeal progresses. DWF can advise on whether the decision applies to your specific supply structure, assist with making and managing protective repayment claims, advise on unjust enrichment risk, and help review contractual arrangements where third-party app operators are involved. We can also advise EV infrastructure investors on the potential implications for investment returns and due diligence.
If you would like advice or further information on the implications of this decision for your business, please contact Nina Basra, Caroline Colliston, Jon Stevens, or any other member of DWF’s tax team.
