HMRC appeals tribunal ruling that would slash VAT on public EV chargers to 5%

"Judge Harriet Morgan found that applying the standard 20% rate was a 'strained construction' of the VAT Act, which treats electricity as being for domestic use provided a single user does not consume more than 1,000 kilowatt hours at one premises in a given month."

"The ruling offered the clearest hope in years that the long-standing gulf between home and public charging costs might finally close, as those with driveways pay 5% VAT while 40% of UK households without off-street parking face a 20% charge."

"In a statement, an HMRC spokesperson said: 'We're appealing this case, as our position is that standard rate VAT applies to electricity supplied through public EV charging infrastructure.'"

HM Revenue and Customs plans to appeal a tribunal ruling that would lower VAT on public electric vehicle charging from 20% to 5%. The ruling, made by Judge Harriet Morgan, determined that electricity for public chargers should be taxed at the reduced rate applicable to domestic use. This decision followed a case by Charge My Street, which highlighted the disparity in VAT rates between home and public charging. The Treasury maintains that the standard VAT rate should apply to public EV charging.

Read at Business Matters