UK VAT on Domestic Electricity to Drop to 0% from October 2026

• VAT on qualifying domestic electricity will drop from 5% to 0% starting 1 October 2026.
• The change is meant to align with the next Ofgem price-cap period, and suppliers are expected to pass savings on to customers, including those on fixed tariffs.
• This applies only to qualifying domestic electricity, not to business electricity, gas, or other energy-related supplies.
• Suppliers will need to update their systems to apply the new VAT rate from 1 October 2026.

Source: deeksvat.co.uk

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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