A recent First-tier Tribunal decision has provided important clarity for public electric vehicle (EV) charge point operators. In Charge My Street Ltd v HMRC, the tribunal held that electricity supplied at public charging points can, in principle, qualify for the reduced VAT rate of 5%, rather than the standard 20%, where supplies fall within the de minimis limit of 1,000 kWh per month.
Background
Charge My Street (CMS) installs community-based charge points, mainly in areas where residents lack access to home charging. CMS originally declared VAT at 20% to HMRC but later argued that its supplies were de minimis and, under VAT legislation, should be treated as domestic supplies subject to VAT at 5%.
HMRC disagreed, arguing that public charging points were not “premises”, that supplies were not made “to a person at any premises”, that the rate should be measured per charging session, and that many supplies were made to third‑party app operators rather than directly to drivers.
The tribunal rejected HMRC’s position on almost all points.
What the tribunal decided
- Public charging locations qualify as premises:
Any identifiable place, such as a marked charging bay in a car park, can be “premises”. It does not need to be a building or belong to the driver.
- Supplies are made to the person receiving the electricity:
A driver using the charge point is the recipient of the supply. They do not need any legal interest in the site.
- The 1,000 kWh limit applies per calendar month
The tribunal confirmed that the threshold must be applied monthly, not daily.
Who receives the supply depends on the payment route
CMS used several payment methods:
- Contactless, QR code, Pay & Charge – CMS supplied drivers directly.
- Fuuse app – CMS was the true supplier because it received payments and handled customer issues.
- Third‑party apps – These acted as principals or commission agents, meaning CMS supplied the app provider, who then supplied the driver. CMS therefore did not supply the driver in these cases.
The appeal was allowed in principle.
Why this matters
This decision reduces the disparity between home EV charging (5% VAT) and public charging (20% VAT). Operators should now review their arrangements to determine where the reduced rate may apply.
Error correction opportunities
Operators who have accounted for VAT at 20% on supplies that qualify for the 5% rate may submit error correction notifications to HMRC for the last four years.
These will be protected claims, as it is not yet known whether HMRC will appeal to the Upper Tribunal. Submitting claims now helps secure potential repayments.
How the Xeinadin VAT team can help
We can support by:
- Reviewing charge point arrangements and payment flows to identify where 5% VAT applies
- Analysing historic charging data to quantify recoverable VAT
- Preparing and submitting protected error correction notifications to HMRC
