Policy paper

VAT and Climate Change Levy on electric vehicle charging points not for public use

Published 28 October 2026

Who is likely to be affected 

Businesses supplying electricity through publicly accessible electric vehicle charging points that are accessible to public or to employees at their workplace and users of those charging facilities, in the United Kingdom.

General description of the measure 

This measure specifies that electricity supplied through electric vehicle charging points that are accessible to the public or to employees at their workplace does not qualify for the domestic rate of Value Added Tax (VAT), currently set at zero.

It also specifies that these supplies of electricity are not supplies for domestic use for the purposes of Climate Change Levy (CCL) and therefore do not qualify for the domestic use exclusion from Climate Change Levy. The measure makes sure a consistent VAT and Climate Change Levy treatment of these supplies and provides greater certainty for businesses and consumers.

Policy objective 

The objective of the measure is to provide certainty and consistency in the VAT and Climate Change Levy treatment of supplies of electricity used to charge electric vehicles at charging points that are accessible to the public or to employees at their workplace. Supplies of electricity for domestic use are currently zero-rated for VAT and are excluded from Climate Change Levy.

Background to the measure 

Supplies of electricity for domestic use were previously subject to the reduced rate of VAT and currently qualify for the temporary zero rate of VAT introduced in Great Britain on 1 October 2026.

In Northern Ireland, qualifying supplies of electricity remain liable to VAT at the reduced rate of 5%. Questions have arisen regarding the VAT treatment of electricity supplied through electric vehicle charging points. The current relief was designed before electric vehicle charging existed and as a result there has been uncertainty about whether certain supplies of electricity used for electric vehicle charging qualify, or not.

The relief is intended to apply to supplies for domestic use only, which does not apply to supplies made from electric vehicle charging points that are accessible to the public or to employees at their workplace. This measure will make the legislation clear, enabling businesses to account for their VAT consistently and with confidence in the correct VAT treatment. 

Climate Change Levy is not charged on supplies of electricity for domestic use.

VAT and Climate Change Levy use similar wording in legislation for determining what is considered domestic use and therefore could be similarly interpreted. Therefore, this measure will also put beyond doubt in Climate Change Levy that supplies of electricity made through electric vehicle charging points and that are accessible to the public or employees at their workplace are not domestic use, ensuring businesses can correctly account for Climate Change Levy. 

Detailed proposal 

Operative date 

The measure will have effect in relation to supplies made on or after 1 November 2026. 

Current law

Group 1 of Schedule 7A to the Value Added Tax Act 1994 (VATA94) permits the reduced rate of VAT to apply to supplies for qualifying use of domestic fuel or power. 

Group 24 of Schedule 8 to the VATA94 provides a temporary zero rate of VAT for qualifying supplies of domestic electricity in Great Britain.

Paragraph 8 of Schedule 6 to the Finance Act 2000 excludes a supply from Climate Change Levy if it is for domestic use. 

Paragraph 9 of Schedule 6 to the Finance Act 2000 defines what is meant by domestic use. 

Proposed revisions 

The measure amends Group 1 of Schedule 7A and Group 24 of Schedule 8 to the VATA94. These Schedules describe supplies which are charged to VAT at 5% and 0%, respectively. Group 1 provides the reduced rate applicable to qualifying supplies of domestic fuel and power, while Group 24 provides the temporary zero rate for qualifying supplies of domestic electricity in Great Britain. 

The measure inserts a new Note 6A into Group 1 of Schedule 7A and a new Note 5A into Group 24 of Schedule 8. The new notes introduce a category of supply known as an Electric Vehicle Charging Supply (EVCS) and provides that EVCS do not qualify for the VAT reliefs available for domestic electricity supplies, including in cases where the electricity supplied falls below the deemed domestic use threshold of 1000 kilowatt hours or less per month. 

An EVCS is defined as a supply of electricity made through an electric vehicle charging point that is accessible to the public, accessible to a section of the public, or accessible to employees or contractors at their workplace. The new notes 6A(3) and 5A(3) set out circumstances when a charging point does not fall within the EVCS definition, namely, if it is accessible only to residents of a particular residential building. New notes 6A and 5A define when a charging point is accessible and define an electric vehicle and electric vehicle charging point.   

The measure inserts a new paragraph 9A into Schedule 6 to the Finance Act 2000 and amends paragraphs 8 and 9 of Schedule 6 accordingly. This new paragraph sets out that electricity supplied through electric vehicle charging points that are accessible to the public or a section of the public, or accessible to employees or contractors at their workplace are not a supply for domestic use under CCL provisions. New paragraph 9A(3) sets out circumstances when a charging point does not fall within the EVCS definition, namely, if it is accessible only to residents of a particular residential building. New paragraph 9A defines when a charging point is accessible and defines electric vehicle, electric vehicle charging point and use for a relevant residential purpose.

The measure will apply to supplies made on or after 1 November 2026. 

Summary of impacts 

Exchequer impact (£ million) 

2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030	2030 to 2031	2031 to 2032
negligible	negligible	negligible	negligible	negligible	negligible

This measure is expected to have a negligible impact on the Exchequer. 

Macroeconomic impact 

This measure is not expected to have any significant macroeconomic impacts. 

Impact on individuals, households and families 

This measure clarifies the VAT and Climate Change Levy treatment of the supply of electricity through publicly accessible electric vehicle charging points and workplace charging points. It is possible that a small number of individuals may be impacted by this measure if it results in a different rate of VAT applied by the supplier. This may result in a reduction or increase in VAT being passed on by the supplier to the end user.

This measure is not expected to impact on family formation, stability or breakdown. 

This measure is expected overall to have no impact on individuals’ experience of dealing with HMRC as the change does not impact how they interact with HMRC. 

Equalities impacts 

This measure may apply to individuals regardless of their protected characteristics. HMRC does not hold data that it can use to assess whether there are any disproportionate impacts to protected groups.

Administrative impact on business including civil society organisations 

This measure will have a negligible impact on businesses who supply electricity for electric vehicle charging points that are accessible to the public or for workplace charging points. They will need to be aware of the legislative change.

One-off costs could include familiarisation with the updated legislation and guidance as well as updating systems if required. There are not expected to be any ongoing costs. 

This measure is not expected to disproportionately impact civil society organisations. 

This measure is expected overall to have no impact on businesses’ experience of dealing with HMRC as the change is a clarification of the legislation for it to work as HMRC intended.

Operational impact (£million) (HMRC or other) 

The VAT and Climate Change Levy treatment of the affected supplies is expected to remain unchanged in all but a small number of cases as a result of this measure. Therefore the impacts will be nil or negligible. 

Other impacts 

Other impacts have been considered and none have been identified. 

Monitoring and evaluation 

The measure will be kept under review through communication with affected taxpayer groups. 

Further advice 

If you have any questions about this change, contact: 

• Joseph Lennox for queries relating to VAT by email at joseph.lennox@hmrc.gov.uk 
• Chris Seedhouse for queries relating to Climate Change Levy by email at chris.seedhouse@hmrc.gov.uk