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HMRC battles overcharging ruling on VAT

22-04-2026

HM Revenue and Customs (HMRC) has confirmed it will appeal a London tax tribunal ruling that found it overcharged VAT on public electric car chargers. The tribunal determined that VAT should be charged at the domestic rate of 5% instead of the business rate of 20%. The discrepancy was discovered by Deloitte, which advised Charge My Street pro bono. Will Maden, director at Charge My Street, said: "Adding 20% makes a huge difference." Industry leaders said the appeal could hinder the transition to EVs, as public charging remains more expensive than home charging. The ruling, if upheld, may lead to claims for overpaid VAT from other operators.

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