Community benefit society Charge My Street has won its appeal on whether public electric vehicle (EV) charging should qualify for the reduced 5% VAT rate.
The Tribunal found that Charge My Street’s model of providing accessible, community-based EV charging met the criteria for the reduced VAT rate previously reserved for domestic electricity supplies.
The ruling overturns HMRC’s initial decision requiring charge point operators to charge the full 20% VAT, a rate widely criticised as a barrier to equitable EV adoption – and the foundation stone of the long-running campaign, FairCharge.
Charge My Street was advised and represented at the Tax Tribunal by Deloitte and Sarabjit Singh KC.
The case centred on whether our operations – centred on neighbourhood, workplace and community-led EV charging – should fall under the “de minimis” provisions allowing a 5% VAT rate on small-scale supplies of electricity supplied for domestic consumption.
The Tribunal agreed that Charge My Street’s approach aligns with the underlying purpose of the reduced rate: enabling households and communities to access affordable energy and supporting the UK’s transition to electric mobility.
This decision is expected to have wide-ranging implications for EV drivers, community charging networks, local authorities, and smaller operators working to expand equitable access to charging in areas historically underserved by commercial providers, it said.
Daniel Heery, Director at Charge My Street, said:
“This is a hugely important outcome – not just for Charge My Street, but for communities across the UK who rely on affordable, local EV charging. Our mission has always been to make neighbourhood charging accessible to everyone, and today’s ruling supports that mission.
“Lower VAT on charging improves fairness and helps accelerate the shift to cleaner transport for all. We rely on investment from ordinary EV drivers to extend our chargepoint network, and this result helps the commercial case for our current share offer”
Dr Will Maden, Director at Charge My Street, said:
“EV adoption must be both practical and affordable at a community level if the UK is to meet its Net Zero commitments. The Tribunal’s decision recognises the essential role of local, public charge points in enabling that transition.
“We are pleased that the ruling provides clarity for operators like us and reassurance for the people and places we serve.”
Daniel Barlow, Tax Partner at Deloitte, said:
“The First-tier Tribunal found that, under existing UK law, drivers should be charged the 5% reduced rate of VAT when charging their electric vehicles at any public charging facility.
“Specifically, the Tribunal interpreted the de-minimis provision in Note 5(g), Group 1, Schedule 7A, VAT Act 1994 as applying the 5% reduced rate of VAT to supplies of electricity at public EV charging locations where the amount of electricity supplied is below 1,000 kilowatt hours per month per customer at each location.”
Image courtesy of Green Car Guide
