VAT Update: Fuel and Power Guidance for Domestic Use

• HMRC updated Notice 701/19: Fuel and Power.
• The notice explains how to treat fuel and power supplies for VAT purposes.
• The update provides more detail on supplies for domestic use.
• Supplies of fuel and power for domestic use are eligible for the reduced rate of 5%.
• The provider must be certain the supply is to a dwelling or certain types of residential accommodation.
• Examples of allowed residential accommodation include: armed forces residential accommodation, caravans, children’s homes, homes providing care for the elderly or disabled, houseboats, houses, flats, hospices, institutions where at least 90% of residents live, monasteries, nunneries, school and university residential accommodation, and self-catering holiday accommodation.
• Buildings not considered residential accommodation include: hospitals, prisons, hotels, and inns.

Source: marcusward.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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