Value Added Tax Act 1994 Schedule 13 para 7

Supplies of fuel and power for domestic or charity use

Schedule 13 paragraph 7 deals with the reduced rate of VAT applicable to supplies of fuel and power when used for domestic purposes or by charities for non-business activities.

• Supplies of fuel and power for domestic use or for use by charities in their non-business activities qualify for the reduced rate of VAT rather than the standard rate.
• The reduced rate applies to supplies of coal, gas, electricity, heating oil and other fuel and power commodities when delivered to domestic consumers or qualifying charities.
• The Finance Act 1995 amended the original provisions, adjusting the VAT rate on these supplies from the transitional rate to the permanent reduced rate of 5 per cent from 1 September 1997.
• Charity use qualifies for the reduced rate only where the fuel and power is used for non-business purposes; any business use by a charity is subject to VAT at the standard rate.