Liability ― supplies of fuel and power

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Liability ― supplies of fuel and power

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides information about the VAT treatment of supplies of fuel and power. It should be read in conjunction with the Liability ― overview guidance note.

For in-depth commentary, see De Voil Indirect Tax Service V4.406.

For HMRC guidance, see Notice 701/19 and VFUP3000.

Liability of fuel and power ― the basics

The supply of any form of power, heat, refrigeration, or other cooling or ventilation, is a supply of goods.

A supply of fuel or power in the UK is subject to the standard rate of VAT, unless it qualifies for:

  1. the zero rate of VAT under VATA 1994, s 30(6)

  2. the zero rate of VAT under VATA 1994, Sch 8, Pt II, Group 24

  3. the reduced rate of VAT under VATA 1994, Sch 7A, Pt II, Group 1

VATA 1994, s 4

If a supply of fuel or power qualifies for:

  1. the zero rate of VAT, the zero rate of VAT takes precedence over the reduced rate of VAT and the standard

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 15 Sep 2026 11:40

Popular Articles

Taxation of loan relationships

Taxation of loan relationshipsThe vast majority of companies will have loan relationships and so will need to consider how they are taxed under the loan relationship rules. There are also specific provisions dealing with relevant non-lending relationships and other deemed loan relationships.

14 Jul 2020 13:48 | Produced by Tolley Read more Read more

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more Read more

Indexation allowance and rebasing

Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview

14 Jul 2020 11:59 | Produced by Tolley Read more Read more