Public EV charging in the UK still carries 20% VAT. But a First-tier Tribunal decision in February 2026 challenged the reasoning behind that rate for some public charging supplies. HMRC disagrees and is seeking permission to appeal, so nothing has changed at the charger yet.
The case matters because it could narrow the tax gap between charging at home and charging in public. It does not, however, mean that every public charge has already dropped to 5%—or that drivers should expect an automatic refund.
What is the VAT on public EV charging in the UK?
HMRC currently applies the standard 20% rate of VAT to electricity supplied through public charge points. Qualifying domestic fuel and power is charged at the reduced 5% rate, which is one reason drivers without home charging can face a higher tax rate for the energy that powers their car.
This difference is about where and how electricity is supplied, not whether the vehicle itself is electric. HMRC’s long-standing view has been that public charge points do not qualify as domestic premises, so the standard rate applies.
That remains the official position today. HMRC confirmed it in Revenue and Customs Brief 4 (2026).
What did the tribunal actually decide?
The case was Charge My Street Ltd v HMRC, decided by the First-tier Tribunal on 26 February 2026. Charge My Street argued that certain small supplies of electricity made at public charge points could qualify for the reduced rate under an existing rule in the VAT Act 1994.
The tribunal agreed with an important part of that argument. It found that the relevant rule can cover electricity supplied to an identified person at identifiable premises when the total supplied by that supplier to that person at those premises does not exceed 1,000 kWh in a calendar month.
Crucially, the tribunal said the customer does not have to own or control the premises, and the premises do not have to be a building. A public car park may therefore qualify as identifiable premises.
But the decision was not a blanket ruling that all public charging must be taxed at 5%. The appeal was allowed “in principle in part”, and the tribunal did not have enough information to decide whether every supply in the case met the conditions. The detailed facts still matter.
Why has the VAT rate not changed?
A First-tier Tribunal decision can be appealed and does not automatically rewrite HMRC policy for the whole market. HMRC has said that public EV charging remains standard-rated and has applied for permission to appeal.
The latest HMRC appeal update available when this article was checked still lists the case as awaiting permission to go to the Upper Tribunal. Until the legal process or government policy changes, drivers should continue to expect 20% VAT in public charging prices.
How much could a reduction to 5% save?
The headline difference between the two VAT rates is 15 percentage points, but that does not mean a current VAT-inclusive charging price would fall by 15%.
If the underlying price before VAT stayed exactly the same, replacing 20% VAT with 5% VAT would reduce today’s VAT-inclusive price by 12.5%. The calculation is:
Current price ÷ 1.20 × 1.05 = hypothetical price at 5% VAT
| Current price at 20% VAT | Equivalent at 5% VAT | Potential saving |
|---|---|---|
| 59p per kWh | 51.6p per kWh | 7.4p per kWh |
| 79p per kWh | 69.1p per kWh | 9.9p per kWh |
| 92p per kWh | 80.5p per kWh | 11.5p per kWh |
At 79p per kWh, a 40 kWh session costs £31.60. On the same pre-VAT price with VAT at 5%, it would cost about £27.65—a saving of £3.95.
These are illustrations, not price promises. A lower VAT rate would not force operators to keep their pre-VAT prices unchanged or pass every penny through to drivers. Tariffs can also include other costs and may change independently.
Could drivers claim a refund now?
There is no automatic consumer refund created by this decision. Public charging continues to be sold under HMRC’s 20% policy while the case is unresolved. Anyone considering a historic VAT claim would need advice based on their own position and records.
For business use, separate rules may allow a VAT-registered business to recover VAT paid on public EV charging, subject to the normal input-tax requirements. HMRC says detailed mileage records may be needed where charging covers both business and private journeys. Drivers and employers should check the current HMRC guidance on electricity for charging electric vehicles rather than treating this article as tax advice.
What happens next?
- Permission to appeal: HMRC is seeking permission to take the case to the Upper Tribunal.
- A possible Upper Tribunal hearing: if permission is granted, the higher tribunal could uphold, vary or overturn the First-tier Tribunal’s reasoning.
- HMRC guidance or policy changes: a final legal outcome—or a government decision—could lead to revised guidance for charge point operators.
- Operator implementation: any practical change would still need clear rules for identifying the customer, the premises and the 1,000 kWh monthly threshold.
There is no confirmed date for a rate change, and no guarantee that the appeal will produce one. The safest reading is that the tribunal opened an important legal question, while the price paid by drivers remains governed by the existing 20% treatment.
Why this matters for EV drivers
The VAT debate is not only about tax law. It affects fairness between drivers who can charge at home and those who depend on the public network. People without a driveway, renters and many urban drivers are more exposed to public tariffs—and therefore to the higher VAT rate.
Clear, current pricing matters while the legal position develops. ONEEV helps drivers find public charge points and view the available tariff information before choosing where to charge. Explore the ONEEV app and compare the information shown for compatible locations before starting a session.
The bottom line
The February 2026 tribunal ruling is significant, but it has not reduced VAT at public charge points. The current rate remains 20%, HMRC is seeking permission to appeal, and the 5% argument depends on conditions that may not apply to every supply.
If the rate eventually fell to 5% and operators passed the change through in full, today’s VAT-inclusive charging prices could be 12.5% lower. Until then, check the tariff before you plug in and treat claims of an immediate nationwide VAT cut with caution.
Frequently asked questions
Is VAT on public EV charging still 20%?
Yes. HMRC’s published position remains that electricity supplied through public EV charge points is standard-rated at 20% VAT while it seeks permission to appeal the Charge My Street decision.
Did the tribunal say all public EV charging should be taxed at 5%?
No. It decided that an existing reduced-rate rule may cover certain supplies to an identified person at identifiable premises where the supplier provides no more than 1,000 kWh to that person at those premises in a calendar month. Whether a particular supply meets the conditions depends on the facts.
Can drivers claim back public charging VAT?
The ruling did not create an automatic consumer refund. VAT-registered businesses may be able to recover VAT relating to business use under the normal input-tax rules, with appropriate records.
How much would a cut from 20% to 5% save?
If the pre-VAT price stayed unchanged and the full reduction was passed on, the current VAT-inclusive price would fall by 12.5%. A 40 kWh session priced at 79p per kWh would fall from £31.60 to about £27.65, saving £3.95.
What happens to the case next?
HMRC is seeking permission to appeal to the Upper Tribunal. Until the appeal process or government policy changes the position, public charging remains standard-rated at 20%.
This article provides general information, not tax or legal advice. VAT rules and case status can change; check current HMRC guidance for the latest position.
