701/19/16 Fuel and power

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

701/19/16 Fuel and power

Part V8 HMRC Notices | Commentary

Fuel and power

April 2016

This notice cancels and replaces Notice 701/19 (August 2010).

1 Introduction

1.1 What is this notice about?

This Notice explains how suppliers and users should treat supplies of fuel and power for VAT purposes.

It also tells you how to treat a number of other supplies connected with fuel and power.

1.2 What's changed?

This notice has had minor changes to improve readability. The paragraph in Section 2.6 on the treatment of connection charges made before 2012 has been removed.

1.3 Law

You can find further information about the current rates of VAT in Notice 700 “The VAT Guide”.

Unless otherwise specified legal references will be from the VAT Act 1994 (VATA 1994).

Under the Act supplies of fuel and power are subject to the standard rate of VAT unless they are eligible for the reduced rate under Sch 7A or being exported outside the EU under s 30(6).

Further details follow in the next sections.

For VAT purposes the supply of heat, power, refrigeration or ventilation is a supply of goods (VATA 1994 Sch 4 para 3). As such the rules surrounding time and place of supply will be those associated with goods rather than those for services.

2 Vat liability of fuel and power—overview

2.1 Reduced-rated supplies

The reduced rate of VAT applies to supplies of fuel and power for qualifying use (see Section 3).

The following supplies are considered qualifying use—


    —     fuel and power for domestic use (see paragraph 3.2);


    —     fuel and power for charity non-business use (see paragraph 3.3);


    —     fuel and power where

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