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.
The Tribunal ruled that if the electricity supplied at a public charge point does not exceed 1,000 kWh per customer per month at a specific location, it can be treated as domestic consumption and qualify for the 5% rate.
HMRC’s 2021 guidance stated that the de minimis provision does not apply to public charge points, so the standard 20% VAT rate applies, whereas the tribunal ruling allows a 5% rate under certain conditions.
The levy is set at 3p per mile for fully electric vehicles and 1.5p per mile for plug‑in hybrids, potentially adding about £255 per year to an average EV driver’s running costs.
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Forecourt Trader · 1 day ago
UK tribunal judge ruled that public EV charging should be taxed at the 5% domestic electricity rate rather than the 20% commercial rate, based on a de‑minimis threshold of 1,000 kWh per month. The decision, made after a challenge by Deloitte for Charge My Street, applies to B2C usage but leaves B2B charging at 20% pending further guidance. HMRC may appeal, but the ruling could reduce the ‘pavement tax’ on public charging.
FleetNews · 2 days ago
A UK tax tribunal has ruled that VAT on public EV charging should be reduced from 20% to 5%, a change that could correct the imbalance for drivers without home chargers. The ruling has not yet been adopted by HMRC, and the article discusses how shared charging infrastructure can complement tax reform to accelerate fleet electrification.
UK Government · 2 days ago
The UK guidance explains how to cancel a VAT registration, either online or by post, using form VAT 7 for individual businesses and form VAT 50‑51 for VAT groups. It advises that businesses should not cancel immediately after an insolvency practitioner’s appointment if asset sales are pending, as VAT on those sales must still be reported. The guidance references Notice 700/11 for further details.
UK GOV · 4 days ago
The UK government has introduced the Value Added Tax (Refund of Tax to Great British Nuclear) Order 2026, allowing companies designated under section 317 of the Energy Act 2023 (GBE‑N) to claim VAT refunds on services that support their non‑business activities. The order was published on 18 March 2026 and provides a statutory framework for these refunds.
RSM US · 4 days ago
A UK tribunal decision in 2024 may allow U.S. biopharma firms with UK operations to claim VAT refunds on prior NHS sales, potentially unlocking up to £2.5 billion. The ruling is under review by the Upper Tribunal, with a judgment expected within the next three to four months. Companies must notify HMRC and register protection claims now to preserve their right to recover VAT within a four‑year window.
GOV.UK · 11 days ago
This guidance outlines the Goods Vehicle Movement Service (GVMS) procedures at the border and during crossings. It details the check‑in process, the requirement for carriers to notify HMRC immediately at departure, and how to verify GMR status. The guidance ensures compliance with automated customs processes for goods vehicles.
