UK to appeal against tax ruling cutting VAT on public electric car chargers to 5%

Charge point operators said the HMRC’s decision to appeal will hold back the transition to electric vehicles. Photograph: Backyard Productions/Alamy

The UK’s tax authorities have decided to fight against a ruling that would cut VAT across all public electric car chargers, despite a judge finding they have been overcharging for years under the law.

Charge My Street, a not-for-profit charging company, last month argued successfully that VAT should have been charged at 5%, rather than 20%, in a case at a London tax tribunal that could have a significant impact on electric car drivers’ costs. HM Revenue and Customs on Tuesday confirmed it will appeal against the ruling.