United Kingdom Budget 2026 VAT and Indirect Tax Changes

• Budget 2026 did not raise the headline VAT rate, but introduced targeted VAT and indirect tax changes, including new liabilities, reliefs, and expanded HMRC compliance powers.
• Zero-rate VAT on qualifying domestic electricity in Great Britain is extended to 30 June 2027; in Northern Ireland, comparable relief is expected from April 2027, with 5% VAT applying until then.
• The zero rate for energy saving materials ends on 31 March 2027 and reverts to 5% from 1 April 2027; heat batteries will be added to the qualifying items list.
• From 1 November 2026, electricity supplied at public EV charging points and workplace charging points will be treated as non-domestic and taxed at 20% VAT, except certain charity non-business use; domestic/home charging remains within the domestic relief.
• From 1 April 2027, the overseas services VAT reverse charge will apply only to VAT-registered UK customers; supplies to non-VAT-registered UK businesses will instead be charged UK VAT by the overseas supplier.

Source: xeinadin.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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