Is Electricity 5% or 20% VAT?

For most businesses, the VAT rate on electricity and gas is 20%, some are eligible for a discount.

Is electricity have VAT?

Is there VAT on electricity? Yes, electricity is one of the many consumables that VAT is levied on. Suppliers must apply this tax on the electricity they supply to businesses, homeowners and other organisations. However, the rates are not the same for everyone and some businesses may be eligible for a VAT reduction.

What VAT rate is charged on electricity bills?

The VAT rate on business electricity bills is 20%, but to promote energy efficiency and help hit national targets, the government offers a discounted rate of 5% for businesses who use a limited amount of electricity.

What is the VAT rate on domestic electricity?


Goods or services VAT rate
Electricity for domestic and residential use or for non-business use by a charity 5%
Gas for domestic and residential use or for non-business use by a charity 5%
Heating oil for domestic and residential use or for non-business use by a charity 5%

Do you pay VAT on water and electricity?

Households don’t pay any VAT on water bills. Domestic customers also don’t pay VAT on disconnection and reconnection charges arising as a result of the non-payment of the bill; or on opening and closing of stopcocks at the request of the water supplier.

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Can I claim VAT back on electricity?

Gas and electricity tariffs for businesses automatically have VAT added to them, and while they technically count as a business-to-business purchase, you won’t be able to claim the tax back.

What is the VAT rate on LPG?

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates.

Type of fuel Rate
Liquefied petroleum gas ( LPG ) 31.61 pence per kg
Natural gas used as fuel in vehicles, for example biogas 24.70 pence per kg

Is Gas and Electric 5% VAT?

If your average daily consumption of energy is lower than the de minimis threshold that we mentioned above, then you are eligible to be billed at 5% VAT on your gas and electricity bills.

Is there VAT on prepaid electricity?

Some prepaid providers work on ‘volume-based’ pricing with means that the units get more expensive the more you buy each calendar month. Prepaid recovery rates are VAT inclusive of 15% of the total amount paid.

What services are VAT exempt?

Examples of exempt items include the provision of insurance, postage stamps and health services provided by doctors. Supplies that are ‘outside the scope’ of the UK VAT system altogether. These supplies are beyond the realm of the UK VAT system and you cannot charge or reclaim VAT on these supplies.

Is there VAT on plain a4 paper?

Generally speaking, leaflets, flyers and booklets are not subject to VAT, whereas other printed items are.

Common articles and their VAT liability.

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Item Liability
Newspapers Zero-rated
Note books, pads and paper Standard-rated
Order books and forms Standard-rated