VAT: HMRC clarifies the Domestic Reverse Charge does not apply to EV charging

By   17 March 2026
HMRC has updated its Notice 735 which explains why the Domestic Reverse Charge (DRC) does not apply to electric vehicles (EVs).

The legislation for the DRC for electricity was designed to exclude supplies of electricity made under supply licences (supply electricity). It also excludes resale supplies of electricity made between the person holding the supply licence and the person making the supply to the consumer of the electricity (the vehicle user).

This means that the reverse charge does not apply to the supply of electricity at a charging point for EVs. This is because either the vehicle user is not VAT registered, or because it is not a wholesale supply. This applies whether or not the electricity is supplied at a public charging point.

Wholesale has an ordinary meaning where the supply is business to business and there is little or no consumption of the supply. EV charging does not fall within this definition.

For the latest case law on public EV charging see here.

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