HM Revenue and Customs (HMRC) has announced it will appeal a London tax tribunal decision that ordered a reduction of VAT on public electric vehicle (EV) chargers from 20% to 5%. This ruling, which recognized that HMRC has been overcharging for years, would have provided substantial relief to the 40% of UK drivers who do not have access to private driveways and rely on public charging points.
The case was brought forward by Charge My Street, which successfully argued the lower VAT rate should apply, reflecting electricity as an essential service. However, HMRC maintains that the standard 20% VAT rate is applicable to electricity supplied through public EV charging infrastructure, leading to their decision to challenge the ruling.
Campaigners and industry leaders have strongly criticized HMRC’s move. Warren Philips, campaign lead at FairCharge, described the appeal as “indefensible,” emphasizing that those without home charging face a disproportionate tax burden. “People unable to charge at home pay four times the VAT rate of their neighbours for identical electricity,” Philips said, highlighting the inequality faced by 1.4 million current EV drivers and millions more who will need to switch as the UK transitions towards electric transport.
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EV advocate Will Maden, director at Charge My Street, echoed concerns about the barriers to EV adoption. “With around 40% of the population lacking driveway access, keeping VAT at 20% significantly increases costs for many,” he said. “We should be making the transition to EVs as affordable as possible – this is a key environmental issue.”
John Lewis, CEO of charge point operator char.gy, called HMRC’s appeal “deeply disappointing” and warned it sends the wrong message regarding climate goals. “The government talks about accelerating EV adoption, yet maintains a tax system that unnecessarily drives up public charging costs and slows down the transition,” he stated.
Tanya Sinclair, CEO of Electric Vehicles UK, argued that appealing the ruling perpetuates inequality. “Drivers without off-street parking already pay more based on where they live. HMRC’s appeal defends this regressive charge, undermining the UK’s EV ambitions,” she said.
Ginny Buckley, CEO of Electrifying.com, also criticized the decision: “For a government claiming to support working people, appealing this ruling contradicts those values. This move disproportionately impacts those without driveways, potentially making EV ownership more expensive than petrol for some.”
HMRC defended its position with a spokesperson stating, “We’re appealing this case as our position is that standard rate VAT applies to electricity supplied through public EV charging infrastructure.”