Tag Archives: VAT-energy

Call for evidence: VAT energy saving materials relief

By   9 May 2023
0

HMRC require feedback on improving energy efficiency and reducing carbon emissions.

The three key objectives are:

  1. improving energy efficiency and reducing carbon emissions
  2. cost effectiveness
  3. alignment with broader VAT principles

HMRC is asking for responses by 31 May 2023, either via email or post.

VAT Treatment of the Energy Bill Relief Scheme

By   14 November 2022
0

HMRC Notice 701/19 has been updated to cover payments under the Energy Bill Relief Scheme.

What is the scheme?

This scheme provides a price reduction to help protect all non-domestic customers in Great Britain from excessively high bills.

All non-domestic customers in Great Britain are eligible for this scheme. This includes businesses, voluntary, and public sector organisations (such as charities, schools, and hospitals).

The scheme administrator will compensate suppliers for the reduced prices that they are charging non-domestic customers and there is no need to take action or apply to the scheme as the price reduction will be applied to bills automatically.

The scheme applies to energy usage from 1 October 2022 up to and including 31 March 2023 with savings first seen in October bills.

VAT Treatment

Payments made to suppliers under the scheme are grant payments and outside the scope of VAT. VAT is only due on the amount suppliers actually charge their customers for energy supplied.

Any VAT incurred by suppliers in relation to the operation of the scheme relates to the taxable supply of energy and is therefore recoverable, subject to normal rules.

If changes are made to the scheme in the future, VAT liability may change.