HMRC Guidance: Fuel and power (VAT Notice 701/19)
This Notice has recently been updated. It now covers the VAT Reverse Charge measures for wholesale gas and electricity and construction services (Section 2) . There is more information about wholesale gas and electricity and using the VAT domestic Reverse Charge at section 3 of Notice 735: Domestic reverse charge procedure (VAT Notice 735).
Sections 4.1 and 4.3 now include more detail about hydrogen gas.
Brief overview
The reduced rate of VAT of 5% applies to supplies of fuel and power for qualifying use.
Qualifying use means:
- fuel and power for domestic use
- fuel and power for charity non-business use
- fuel and power where the amount supplied does not exceed the small quantities, called the de minimis limits
- fuel and power partly for qualifying use and partly for other purposes, where 60% or more of the supply is for qualifying use
Other supplies of fuel and power in the UK are standard rated.