Commentary

701/16/02 Water and sewerage services

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

701/16/02 Water and sewerage services

Part V8 HMRC Notices | Commentary

701/16/02
Water and sewerage services

March 2002. Update 1 (August 2004) is included in this notice

1 Introduction

1.1 What is this notice about?

1.2 Who should read this notice?

1.3 What law covers this notice?

2 Water

2.1 What is the VAT liability of water supplied for industrial use?

2.2 Who decides the use of the water?

2.3 What are “industrial activities”?

2.4 What is the VAT liability of water supplied for non-industrial use?

2.5 Mixed use—the “predominant activity” test

2.6 Supplies to offices of industrial customers

2.7 Eligibility declarations

3 Sewerage services

3.1 What is the liability of sewerage services?

4 Supplies of hot water and steam for heating, laundry or other purposes

4.1 Heated water

4.2 Steam

4.3 Natural hot springs

4.4 Supplies for domestic or charity non-business use

5 Supplies in connection with water and sewerage services

5.1 Standard rated supplies

5.2 Civil engineering

5.3 Infrastructure charges

5.4 Water meters

1 Introduction

1.1 What is this notice about?

This notice explains the VAT liability of—

  1.  

    —     water supplies—see section 2;

  2.  

    —     sewerage services—see section 3;

  3.  

    —     hot water and steam—see section 4; and

  4.  

    —     other related supplies—see section 5.

It has been restructured to improve readability, but technical content has not changed from the February 1999 edition.

This notice and others mentioned are available both on paper from our National Advice Service and on our internet website at www.hmce.gov.uk.

1.2 Who should read this notice?

You should read this notice if you supply or buy water, or sewerage services.

1.3 What law covers this notice?

VATA 1994 s 30 holds that goods and services specified in VATA 1994 Sch 8 are zero-rated. Schedule 8 Group 2 (as amended by SI

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial