Sewerage and water

V4.271 Sewerage services and water

This paragraph describes the zero-rating extended to certain sewerage and water supplies which is conferred by VATA 1994, Sch 8, Group 2. In particular, it examines:


    •     the definition of a 'relevant industrial activity' which is relevant to the relief in VATA 1994, Sch 8, Group 2


    •     the zero-rating for sewerage services (item 1)


    •     the zero-rating for water (item 2)

Definition of 'relevant industrial activity—sewerage services and water (zero-rating)'

In general terms, zero-rating of supplies of water and sewerage services is not permitted where the supply is in connection a 'Relevant Industrial Activity' (although see the scope of the relevant zero-rated items below).

This expression 'relevant industrial activity' is defined as any activity described in the 1980 Standard Industrial Classification Divisions 1–51. These Divisions cover:


    •     the energy and water supply industries


    •     the extraction of minerals and ores other than fuels, and the manufacture of metals, minerals and chemicals


    •     metal goods, engineering and vehicles


    •     other manufacturing industries


    •     construction

Although more

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