How do I apply for a VAT reduction for my business energy bills?

Most businesses are charged VAT at 20% on business energy, certain businesses pay the domestic rate of 5%. Climate Change Levy will also be removed from these businesses’ energy bills.

If your business is eligible for reduced VAT rate please download, complete and then post the British Gas business VAT form (PDF, 165kb) to receive the reduction.

If you have more than one qualifying premises, you'll need to fill out a separate certificate for each of them.

Post to us
British Gas,
Business Customer Operations,
Winnall Down, Alresford Road,
Winchester, SO21 1FP

FAQs on VAT declarations for business energy



What types of businesses are charged the lower rate of VAT?

A: Your business will be eligible for the lower 5% rate of VAT if its gas and electricity is supplied for domestic use. This includes charities and non-profit organisations.

Certain businesses with low energy use are charged at the reduced 5% VAT rate, but they may revert to the 20% rate if their energy use changes.

If a business pays reduced VAT on business energy, does it pay the CCL?

A: Where the reduced rate of VAT is charged, a business won't have to pay the Climate Change Levy (CCL).

Will one VAT certificate cover both my gas and electricity?

A: It will if we are the current energy supplier to the premises for both fuel types.

Can I request a VAT reduction by phone?

A: No, we need a signed document to meet our regulatory obligations. So you will need to complete the certificate and return it to us by post.

Where can I get help completing the VAT certificate?

A: See paragraph 3.5 of VAT Notice 701/19 on the HMRC website.

There is also a guide and some FAQs within the pdf download.

Can you back-date my VAT changes if I send a certificate after the qualifying date?

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.

If you’re a large business, we’ll apply your reduced VAT rate from the date we receive your new VAT certificate.

I’m moving out soon, do I need to complete a VAT certificate?

A: To qualify for the reduced rate, 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 received your VAT certificate. We aim to do this within 28 days.

If your new premises qualify for the reduced VAT rate, you’ll need to complete and return a new VAT certificate for the property.

Will I need to submit a new form periodically?

A: Not unless the situation changes. You’ll need to submit a new certificate if:

  • The qualifying percentage gas and/or electricity use changes
  • You move premises
  • You change energy supplier
Where can I get more information on VAT on business energy?

A: If you have further questions, you can contact HMRC VAT general enquiries on 0300 200 3700. There’s also a wealth of information on the HMRC website, including the full version of VAT Notice 701/19: fuel and power

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