What rate of VAT should I be charged for my energy?

VAT on energy for a business is normally charged at 20%. However, some businesses such as a religious places of worship/charities/carehomes/holiday lets/schools would qualify for the full 5% VAT charge. However if you are a business that contains a domestic dwelling i.e. flat above a take away or above a pub you are eligible for a proportion of the business usage to be classed as domestic. To claim this a VAT declaration form would need to be completed.
There are businesses who are entitled to the 5% without completing a VAT declaration form, these are called ‘De-minimis’ supplies. This means your supply is using an average of no more than 33 kwh per day (1,000 kwh per month) for business electricity and/or an average of no more than5 therms or 145 kwh per day (150 therms or 4,397 kwh per month) for business gas. If a business falls within this criteria, they will attract the full 5% VAT on gas and/or electricity bills.

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