Great Britain Introduces Temporary Zero VAT Rate for Domestic Electricity

• Qualifying supplies of domestic electricity in England, Scotland and Wales will be zero-rated from 1 October 2026 to 31 March 2027. [gov.uk], [gov.uk]
• Northern Ireland remains subject to the existing 5% reduced rate for qualifying electricity supplies. The temporary zero rate applies only in Great Britain. [gov.uk], [gov.uk]
• Other forms of qualifying domestic fuel remain subject to the 5% reduced rate. The measure changes the rate for qualifying electricity but does not create a general zero rate for all fuel and power. [gov.uk]

Extended article

HM Revenue & Customs has published Revenue and Customs Brief 10 (2026), explaining the temporary zero VAT rate for qualifying supplies of domestic electricity in Great Britain.

The zero rate applies from 1 October 2026 until 31 March 2027 to qualifying electricity supplies made in England, Wales and Scotland.  [gov.uk], [gov.uk]

The measure applies to supplies of electricity that qualify under the existing domestic fuel and power relief. It changes the applicable rate from 5% to 0% for the temporary period. [gov.uk]

The change does not apply to Northern Ireland. Qualifying supplies there will continue to be taxed at the reduced 5% rate. [gov.uk], [gov.uk]

The zero rate is also limited to electricity. Other types of domestic fuel and power remain subject to the existing 5% reduced rate where their conditions are satisfied. [gov.uk]

The official guidance states that the measure affects businesses providing qualifying supplies and recipients of those supplies. It also addresses the effect of the temporary period on billing and VAT accounting. [gov.uk]

Electricity suppliers should ensure that billing systems apply the correct rate by territory and relevant period. The distinction between Great Britain and Northern Ireland is essential because the VAT rate will differ for otherwise qualifying electricity supplies during the temporary period.

External links

• Read Revenue and Customs Brief 10 (2026) [gov.uk]
• Review HMRC’s detailed explanation of the temporary zero rate [gov.uk]