The UK’s tax authorities have decided to fight against a ruling that would cut VAT across all public electric car chargers, despite a judge finding they have been overcharging for years under the law.
Charge My Street, a not-for-profit charging company, last month argued successfully that VAT should have been charged at 5%, rather than 20%, in a case at a London tax tribunal that could have a significant impact on electric car drivers’ costs. HM Revenue and Customs on Tuesday confirmed it will appeal against the ruling.
The decision means drivers who rely on public EV charging, especially those without off-street parking, will face higher electric vehicle charging costs. Simply put, they will pay more than drivers who can charge at home, making it harder for many to access the best EV charging tariff for their daily needs.
They will pay more than drivers who can charge at home.
For years, this imbalance has been a barrier to a fair shift to electric vehicles and has hurt people without driveways the most. While the EV market continues to grow, achieving public vs domestic charging parity remains a key challenge in the UK’s net-zero transition.
A Missed Opportunity for Fair EV Charging Tariffs
char.gy’s position is clear: equal access to affordable charging is essential for widespread EV adoption.
The Guardian reports that, "The case hinges on the interpretation of a few lines in the VAT Act. It says that electricity counts as “always for domestic use” as long as one person does not use more than 1,000 kilowatt hours (kWh) a month at a single premises – enough to recharge a Tesla Model Y 16 times over. Accountancy firm Deloitte discovered the discrepancy, and worked pro bono with Charge My Street."
John Lewis, chief executive at char.gy, said HMRC’s appeal was a “deeply disappointing decision, and one that sends entirely the wrong signal to the millions of people who rely on public charging”. He said the company would immediately pass on a VAT cut to its customers.
He said: “The government talks about accelerating EV adoption, yet is actively choosing to maintain a tax structure that makes public charging more expensive than it needs to be and undermines the transition.”
Around 40% of UK households don’t have off-street parking. This means they rely on public charging infrastructure, and without a change in VAT, those drivers will continue to pay more simply due to their living situation.
As a leading provider of residential on-street charging, char.gy remains focused on supporting these drivers.
While policy change is critical to unlocking lower costs at scale, char.gy continues to invest in expanding access to fair, transparent, and dependable charging for communities across the UK. We do this by adding EV charge points to street fixtures, like lampposts. This provides easy, reliable EV charging near home, helping to lower the overall electric vehicle charging costs for urban residents.
Looking Ahead: Ensuring a Fair Net Zero Transition
The net-zero transition to electric vehicles must work for everyone, not just those with driveways. Aligning public EV charging VAT with domestic electricity remains one of the most direct ways to achieve that.
char.gy will keep pushing for a fairer system. We will work with partners, policymakers, and local authorities. We will help make cleaner transport practical and fair for all drivers. Our goal is to ensure that finding the best EV charging tariff isn't restricted by your postcode or parking setup.
There may still be a route to change, but it’s unlikely to come quickly. While legal appeals are sometimes possible, they depend on specific grounds and strict processes. More often, changes to VAT treatment come through government policy decisions rather than the courts.
That means continued industry engagement, political support, and public awareness will be key. This ruling doesn’t end the conversation. It shows we still need action. We must build a fairer VAT framework for public EV charging.