You may be able to claim a rebate for up to 12 months from the date we receive a valid VAT Certificate.
If your business uses energy for residential purposes such as a care home or student accommodation, the proportion of energy used for domestic reasons will quality for 5% VAT.
If more than 60% of your business energy is used for domestic reasons, the 5% rate of VAT will apply to the whole bill.
When your average daily consumption of energy is not more than the 'de minimis' limits set out by HMRC, then you are eligible to be charged 5% VAT on your gas and electricity bills.
Your average daily use must be no more than:
33kWh (1000 kWh per month) of business electricity
145 kWh or 5 therms (4397 kWh per month or 150 therms) of business gas
You can apply
Before you start, it may help to have your latest energy contract or bill to hand.
You’ll need to provide a separate form for each qualifying property and fuel type.
A: Charities and non-profit organisations that use part or all their energy for non-business use, businesses that use some or all of their energy for domestic purposes and low energy users - defined as using less than 1,000 kilowatt hours (kWh) of electricity every month (33 kWh a day), or 4,397 kWh of gas (145 kWh a day).
VAT may revert to the default rate – currently 20% - if the business energy use changes.
Some suppliers may be granted VAT relief at 0% where, for example, energy use has been declared for visiting NATO forces.
A: No, you won't have to pay the Climate Change Levy (CCL).
A: Yes, if you complete and send a VAT certificate by post and we are the current energy supplier for both fuel types. You’ll need to submit separate forms for gas and electricity if you apply online.
A: No, we need a valid VAT Certificate, which you can submit online, or by post to meet our regulatory obligations.
A: If you're a micro business, we'll back-date changes for a maximum of 12 months from the date we receive a valid VAT Certificate.
For all other customers, we'll apply the reduced VAT rate from the date we receive your new VAT certificate.
A: You'll need to complete and return a VAT Certificate for your current premises. We'll update your account and re-bill all charges back to a maximum of 12 months from the date we receive your VAT Certificate to the date we stop supplying your energy. We aim to do this within 28 days.
If your new premises qualify for a reduced VAT rate, you'll need to submit, or post a new VAT Certificate.
A: Not unless the situation changes. You'll need to submit a new VAT Certificate if:
A: You can find more information on the HMRC website.