7:25 am, April 22, 2026
The UK’s tax authority is set to appeal a landmark tribunal ruling that would have cut VAT on public electric vehicle (EV) charging from 20% to 5%.
The decision follows a tribunal between HMRC and community charging operator Charge My Street held in February, which concluded that public charging should be treated the same as domestic electricity and therefore qualify for the reduced VAT rate.
If implemented, the ruling would have aligned public charging with the 5% VAT applied to home electricity, potentially saving drivers hundreds of pounds a year .
However, HMRC has now said it will challenge the decision, meaning the current 20% VAT rate on public charging will remain in place while the process continues.
Will Maden, a director at Charge My Street, quoted in The Guardian, said: ‘About 40% of the UK population, they don’t have drives. Transitioning to EVs is a huge problem. Adding 20% makes a huge difference.
‘My personal view is I think we should be making the transition to EVs as cheap as we can. This is an environmental issue.’
Meanwhile, Vicky Read, chief executive, ChargeUK said: ‘Interest in EVs is surging as drivers look to shield themselves from volatile petrol prices. But for the many who cannot charge at home that equation is still not straightforward – addressing the pavement tax would help make it so.’
While the ruling only applies to Charge My Street, if it fails, it could pave the way for other companies to bring similar cases against HMRC.
Industry figures have long said that public charging should be taxed at the same rate as home charging.
A year ago, the Society of Motor Manufacturers and Traders called on the government to introduce a range of incentives to make the switch to EV easier for consumers, and this included making charging a level playing field.
It’s believed that the difference in VAT rakes in some £85m extra a year for the Treasury.
An HMRC spokesperson said: ‘We’re appealing this case, as our position is that standard rate VAT applies to electricity supplied through public EV charging infrastructure.’
