On February 26, 2026, the FTT ruled that the applicants EV charging model qualifies for a 5% reduced VAT rate, allowing public charging supplies under specific conditions to be treated as domestic use, challenging HMRC's standard rate application.
UK Tribunal Confirms 5% VAT Rate for Public EV Charging
Public
United Kingdom
Author: Ema Stamenković
Category:
General information
Views:
770
Content accuracy validation date:
17.03.2026
Content accuracy validation time:
11:13h
On February 26, 2026, the First-Tier Tribunal (FTT) published its ruling in a case. A UK social enterprise installing and operating community EV chargepoints, disputed the VAT rate on its public charging supplies. The decision, potentially appealable, is significant for the industry if upheld.
Facts and FTT Decision
The applicant initially charged the 20% standard VAT rate on electricity supplied via its charging points. In 2023, it claimed the 5% reduced rate should apply and sought repayment from HMRC, which HMRC accepted and refunded in September 2023.
The applicant then requested a formal ruling; in February 2024, HMRC decided the standard 20% rate applies to public EV charging points, leading to an appeal in March 2024. In June 2024, HMRC assessed the company to repay the refunded amount, claiming the repayment was erroneous.
This prompted the FTT appeal. The FTT's task was to interpret provisions and decide if electricity at public EV chargepoints qualifies for reduced-rate treatment. The dispute focused on three issues: where the electricity is supplied, how the consumption threshold is measured, and who receives the supply.
After examining facts, evidence, and provisions, the FTT ruled the applicants EV charging model qualifies for the 5% reduced VAT rate. It held that electricity supplied at a public charge point, not exceeding 1,000 kWh per customer per month at a specific location, can be treated as domestic use eligible for the reduced rate.
Other news from United Kingdom
UK: Understanding VAT Penalties: Rules, Appeals, and Risk Mitigation
Public
United Kingdom
Author: Ema Stamenković
United Kingdom
Author: Ema Stamenković
HMRC imposes VAT penalties based on inaccuracies: 30% for lack of reasonable care, 70% for deliberate but not concealed errors, and 100% for concealed errors. No penalty applies if reasonable care is taken. Taxpayers can reduce penalties through admission, assistance, and prompt documentation. HMRC may suspend penalties for up to two years for non-deliberate errors. Appeals can be requested and ti... Read more
New document was uploaded: E - invoicing system in the UK
United Kingdom
Author: Ema Stamenković
The document is about the UK government's plan to make electronic invoicing (e-invoicing) mandatory for all VAT invoices in B2B and B2G transactions starting in April 2029. It confirms that the mandate will be introduced gradually (beginning with large companies, then SMEs), will use a four-corner interoperable model, and will not include real-time reporting to HMRC. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: Payment Methods in the UK
United Kingdom
Author: Ema Stamenković
This document provides a detailed overview of the most common payment methods used in the United Kingdom for both online and in-person transactions. It highlights that the UK has a highly advanced digital payment system, where debit cards and contactless payments dominate, while cash usage has significantly declined. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Value Added Tax (VAT) in the UK
Public
United Kingdom
Author: Ema Stamenković
United Kingdom
Author: Ema Stamenković
VAT is a consumption tax in the UK, with rates at 20%, 5%, and 0%. It applies to most goods and services. Businesses collect and remit VAT, and must register if taxable turnover exceeds £90,000 within 12 months or is expected to in 30 days. Certain exemptions apply, including for cultural events and health services. Taxable turnover includes various sales and services. Registration must occur with... Read more
UK Zero-Rated VAT on Exports: HMRC Issues New Guidance and Proof Standards for 2026
Public
United Kingdom
Author: Ema Stamenković
United Kingdom
Author: Ema Stamenković
VAT Notice 703 has been updated to clarify zero-rated VAT for UK exports, ensuring compliance with current legal standards and customs procedures as of February 13, 2026, emphasizing documentation and specific export conditions. VAT Notice 703, HMRC's guidelines for applying zero-rated VAT to products exported from the UK, has been amended. The modifications eliminate obsolete customs language an... Read more
UK Government Considering VAT Cut on Public EV Charging
Public
United Kingdom
Author: Ema Stamenković
United Kingdom
Author: Ema Stamenković
Officials are considering reducing VAT on public EV charging from 20% to 5% to match home charging rates, addressing tax disparities. This follows concerns over a pay-per-mile scheme starting in 2028, aimed at ensuring EV adoption remains viable amid rising costs. Officials are exploring a reduction in VAT on public EV charging from 20% to 5%. This would align it with the reduced VAT rate paid by... Read more