In a recent VAT case (Charge My Street Ltd v HMRC [2026] TC09802), the First Tier Tribunal found that electric vehicle charging supplied at public charging stations qualified for a 5% reduced rate VAT charge. This ruling contradicts HMRC’s long-held policy that electric vehicle charging at public charging stations is subject to a standard 20% rate of VAT.
Charge My Street Ltd (CMS) supplied electric vehicle charging at charging stations in public places in the North of England, which were installed and operated by CMS. CMS considered that VAT was due on the supplies at the reduced rate of 5% which applies to supplies of fuel and power for (or deemed for) domestic use.
VAT legislation allows ‘domestic’ supplies of fuel and power to be reduced-rated at 5%. ‘De minimis’ supplies of electricity (below 1,000 kWh per month) are classed as domestic supplies.
The Tribunal found that when supplies were made to individual customers, they were below 1,000 kWh per month and therefore qualified for the 5% reduced-rating.
This ruling effectively removes the VAT disparity between reduced-rated electricity used to charge vehicles at home and the standard-rated electricity used to charge vehicles and public charging stations. Does this mean we can expect to see a reduction in price at public charging stations? Unfortunately, not, or not yet. The Tribunal finding does not carry force of law and it is expected that HMRC will appeal. We will watch the CMS case progress with interest however. This case also demonstrates how complicated VAT can be and if you have any doubt about the VAT rate you should be applying to your products and services, please do get in touch.
