- The UK Prime Minister Andy Burham will cut VAT on domestic electricity bills from 5% to 0% starting 1 October 2026 to help with living costs.
- Suppliers are expected to pass the VAT cut on to all customers, including fixed-tariff customers.
- Small businesses qualifying for domestic energy VAT relief, plus eligible charities and residential care homes, will also benefit.
- Utility companies may face major operational and tax changes, including handling existing customer credit balances and updating ERP/billing systems.
- The VAT change may also affect claims in the EV charging sector.
Source: ey.com
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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