UK Extends VAT Zero Rating to EV Charging Points Installed in New Homes

• HMRC has added electric vehicle charging points to the list of items that can qualify for VAT zero rating when supplied as part of qualifying construction work on new dwellings.
• The clarification was incorporated into section 13.8.1 of VAT Notice 708 on 26 August 2026.
• Contractors and developers should distinguish qualifying residential installations from standalone equipment sales and public EV charging services, which follow different VAT rules.

Extended article

HMRC has updated its construction VAT guidance to include electric vehicle charging points among the items that may qualify for zero rating when supplied in connection with qualifying dwellings.

The GOV.UK notification received on 26 August 2026 states that electric vehicle charging points were added to the list of zero-rated items in section 13.8.1, “Dwellings”, of VAT Notice 708.

VAT Notice 708 explains the VAT treatment of construction work, conversions, the sale or long lease of new buildings and building materials supplied by contractors. The inclusion of an item in the list does not mean that every supply or installation of that item is automatically zero-rated. The treatment continues to depend on the nature of the building, the work being performed and whether the equipment is supplied by the contractor in the course of qualifying construction work.

The practical impact is therefore likely to arise principally where EV charging infrastructure is incorporated into the construction of new dwellings. Contractors and developers should ensure that their VAT coding differentiates between:

• charge points supplied as qualifying building materials with eligible construction services;
• standalone sales of charging equipment;
• installations in existing buildings;
• installations connected with commercial buildings; and
• the subsequent supply of electricity through the charge point.

The update should not be confused with the separate question of the VAT rate applicable to electricity supplied through public EV charging points. HMRC’s published position remains that electricity supplied at public charging locations is standard-rated while it pursues its response to the First-tier Tribunal decision involving Charge My Street Limited.

For affected construction projects, tax teams should review contracts, bills of quantities, supplier invoices and VAT determination logic. Where the equipment is part of a wider qualifying residential construction supply, the documentary trail should show clearly that the charge point was supplied and installed as part of that work.

External links

• HMRC guidance on VAT and energy-saving materials
• HMRC Brief 4 (2026) on electricity supplied at public EV charging points

The public-charging brief confirms HMRC’s current standard-rate position and explains the tribunal proceedings. [gov.uk]