Image: char.gyThis comes after the First-tier Tribunal ruled in favour of non-profit community charging provider Charge My Street in February, which argued that electricity supplied via public charge points should qualify for the reduced domestic rate. Because of the HM Revenue and Customs’ (HMRC) appeal, the ruling will not take effect unless upheld by a higher court.The case centres on the interpretation of existing VAT legislation in the UK. As The Guardian points out, the legislation defines electricity as ‘always for domestic use’ if consumption does not exceed 1,000 kWh per month at a single premises. Tax specialists at Deloitte advised that this threshold would rarely be exceeded by individual EV users at public charge points. The latter had worked with Charge My Street in the initial case.Tribunal judge Harriet Morgan had concluded that applying the standard 20% rate would represent a ‘strained construction’ of the law.The VAT differential has long been criticised within the EV sector. While home charging is taxed at 5%, public charging remains subject to the standard 20% rate. Fleet News cites data from Zapmap, which suggests that this disparity generates approximately £85 million annually for the Treasury, with projections rising to £315 million by 2030 as EV adoption increases. Moreover, industry representatives argue that the higher rate disproportionately affects drivers without access to private charging.John Lewis, CEO of char.gy, described HMRC’s decision as ‘a deeply disappointing decision, and one that sends entirely the wrong signal to the millions of people who rely on public charging.’“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,” he added.Similarly, Vicky Read, CEO of ChargeUK, called the move ‘disjointed and disappointing,’ noting that it comes as policymakers seek to expand charging access for households without off-street parking. Government data suggests around eight million households in England fall into this category.If the appeal fails, charge point operators are likely to pursue claims for overpaid VAT, potentially covering several years. For now, stakeholders across the UK’s electric mobility sector are closely watching the Upper Tribunal’s decision.theguardian.com, fleetnews.co.uk