Charge My Street decision: Reduced VAT implications for EV businesses and investors

Why should I read this?

The First-tier Tribunal (FTT) has released its decision in Charge My Street Limited v HMRC [2026] UKFTT 00318 (TC), which concerned the VAT treatment applicable to the charging of electric vehicles (EVs) in public places.

HMRC argued that the appellant's supplies of electricity charging for EVs at public charge points were subject to the standard VAT rate of 20%. However, the FTT accepted the appellant's arguments that these supplies (up to 1,000 kilowatt hours per customer, per month, at each charging location) should instead attract the reduced VAT rate of 5%.

This decision is significant for the EV sector, particularly charge point operators and investors, as it materially affects pricing models, margins and the commercial viability of public charging infrastructure. The application of the reduced rate removes the VAT disparity between public and domestic charging, which has long been viewed as a barrier to EV adoption.

What should I do?

The Charge My Street Limited appeal was a lead case, with VAT claims made to HMRC by various other charge point operators standing behind it. Other EV charging suppliers which have accounted for VAT at the standard rate on their supplies should now consider submitting claims to HMRC for overpaid output VAT on the basis of the FTT's decision.

Any such claims should be submitted as soon as possible, as there is a four year time limit for VAT repayment claims, running from the end of the VAT period in relation to which output VAT was overpaid.

EV charging suppliers should consider:

• reviewing historic VAT records across their charging networks to quantify potential repayments;
• assessing whether pricing strategies or customer contracts should be updated to reflect the reduced VAT rate;
• modelling the impact of potential VAT repayments on cash flow, funding arrangements and investor reporting; and
• ensuring systems are in place to apply the reduced rate correctly, including monitoring usage thresholds at each charging location.

What else do I need to know?

HMRC may seek to appeal the FTT’s decision to the Upper Tribunal, meaning that the VAT treatment of public EV charging supplies may be subject to further judicial consideration. However, this does not preclude taxpayers from now submitting claims to HMRC for overpaid output VAT (which may need to be stayed pending the outcome of further litigation), in order to protect their position.

Investors in EV charging and wider EV infrastructure businesses should assess whether the decision alters asset valuations, return assumptions or funding models, and consider whether portfolio companies have taken appropriate steps to preserve historic VAT recovery positions and reflect the reduced rate in forward looking forecasts.

Our tax disputes team can advise you on the merits of submitting claims for overpaid VAT to HMRC, and the process for doing so.

For more information

For more information about this case and how it may affect your business, please do not hesitate to get in touch with any of the Eversheds Sutherland contacts set out below.

Further reading

• Charge My Street Limited v HMRC [2026] UKFTT 00318 (TC)