That said, may be eligible to pay the lower, domestic VAT rate of 5% depending on the type of business you own and the way you use energy. See below if you quality for the reduced rate.
VAT Form >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: 145 kWh or 5 therms (4397 kWh per month or 150 therms) of business gas.
Finally, do let us know if we supply your energy to multiple sites within the same geographical compound (i.e. if one building serves the other in some necessary or reasonably useful way), as it may be possible to group these together for De-minimus calculation purposes.
Use the below form to provide us details. Please note, we only validate eligibility based on the information you provide.
Alternatively, if you believe you are no longer eligible for the reduced VAT rate, please complete the relevant form below to let us know.
If you’re unsure about your eligibility or whether you still qualify, please contact HMRC for further information and guidance.