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.
From 2 March 2026, public EV charging will be subject to a 5% VAT rate instead of the previous 20%.
The ruling covers charging at service stations, supermarkets and residential streets.
EV drivers using the public charging network will benefit, as they will pay the same 5% VAT rate as when charging at home.
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VatCalc · about 3 hours 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.
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