VAT and Climate Change Levy on electric vehicle charging for non-domestic use
Published 28 October 2026
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Purpose of this brief
This brief explains that the Government has clarified in legislation that the following supplies of electricity are not for domestic use for VAT purposes:
- publicly accessible electric vehicle charging points
- charging points accessible to employees and contractors at their workplace
These supplies will be standard rated unless supplied to a charity and used for non-business purposes.
The legislation takes effect on 1 November 2026.
Who should read this brief
You should read this brief if you are:
- a public charge point operator
- a VAT adviser
Background
Supplies of electricity for domestic use are usually subject to the reduced rate of VAT. A temporary zero rate of VAT has applied in Great Britain from 1 October 2026.
The domestic electricity relief was introduced before electric vehicle charging existed. Questions have been asked about whether supplies of electricity through certain electric vehicle charging points qualify for the relief.
Following the First-tier Tribunal decision in Charge My Street Ltd, the Government has legislated to confirm the VAT treatment of these supplies.
Details
The legislation gives statutory effect to HMRC’s longstanding policy that electricity supplied through publicly accessible electric vehicle charging points is not supplied for domestic use. It also provides that electricity supplied through charging points accessible to employees and contractors at their workplace, is not supplied for domestic use.
The Climate Change Levy is not charged on supplies of electricity for domestic use, so the Government has also put in legislation that electricity supplied through publicly accessible electric vehicle charging points and workplace charging points are not considered a supply for domestic use for the purposes of Climate Change Levy.
This will ensure businesses can correctly account for Climate Change Levy.
The new legislation applies from 1 November 2026.
HMRC policy
Electricity used to charge an electric vehicle as part of a general supply of electricity to a home may continue to qualify for VAT relief and be treated as supplied for domestic use for Climate Change Levy purposes.
A separate supply of electricity through a stand-alone charging point provided for private residential use at a particular dwelling, residential building or building used for a relevant residential purpose may qualify for relief.
Electricity supplied through a publicly accessible vehicle charging point or a workplace charging point is not considered a supply for domestic use and does not qualify for relief on that basis. Separate rules apply to supplies to charities for non-business use.
More information
See VAT Notice 701/19 for more information.