Domestic reverse charge ― trading in renewable energy certificates

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Domestic reverse charge ― trading in renewable energy certificates
  • Background
  • What are renewable energy certificates?
  • Supplies excluded
  • Certificates are supplied as part of a power contract or agreement
  • Practical points

Domestic reverse charge ― trading in renewable energy certificates

This guidance note provides an overview of the scope of the domestic reverse charge applied in respect of trading in renewable energy certificates. This note should be read in conjunction with the Domestic reverse charge ― overview and Domestic reverse charge ― accounting requirements guidance notes.

Background

The reverse charge mechanism for businesses trading in renewable energy certificates was introduced with effect from 14 June 2019 and applies to the buying and selling of renewable energy certificates in the UK from that date.

What are renewable energy certificates?

These are certificates that are issued to electricity and gas generators when they produce renewable energy. These certificates can be traded as a commodity which creates an opportunity for fraud to occur. These certificates are commonly called Guarantees of Origin (GoOs) and can also be called (this list is not exhaustive):

Popular documents