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Government confirms 20% public EV charging VAT despite tribunal ruling favouring lower rate
The Government has confirmed plans to legislate for 20% VAT on electricity supplied through public and workplace electric vehicle charging points, following a tribunal ruling that challenged the existing tax treatment.
The measure was announced by HM Treasury on Wednesday 28 October as part of Budget 2026 and the legislation will be included in Finance Bill 2026-27, with the Government specifying an effective date of 1 November 2026.
It will establish that electricity supplied through publicly accessible and workplace charging points will continue to be subject to standard-rate VAT. The legislation will also clarify that publicly accessible charging points are not treated as domestic use for Climate Change Levy purposes.
The announcement follows a February ruling by the First-tier Tribunal in favour of Charge My Street, a community charging operator based in northern England.
The tribunal found that certain supplies of electricity at public charging locations could qualify for reduced-rate VAT under existing legislation. Its decision depended on specific statutory conditions, including the quantity of electricity supplied.
HM Revenue & Customs subsequently applied for permission to appeal and maintained its position that public electric vehicle charging should remain subject to 20% VAT.
The latest Budget announcement would establish that treatment in legislation, limiting the scope for public charging to qualify for domestic electricity VAT relief going forward.
The final end point in what has been a hot topic for cabbies driving electric taxis is significant because qualifying domestic electricity supplies in Great Britain currently benefit from a temporary 0% VAT rate. The Government has extended that relief until July 2027.
Electric taxi and private hire drivers relying on public charging will therefore continue facing a different VAT treatment from drivers charging through qualifying domestic electricity supplies.
However, the announcement does not itself establish a new increase in public charging prices. HMRC has consistently maintained that public charging should attract standard-rate VAT, and operators already applying 20% would not necessarily need to change their prices.
For electric taxi and private hire operators, particularly those without access to home or depot charging, the continuing difference in VAT treatment remains a factor in vehicle running costs and fleet electrification decisions.
