VAT reductions for business energy
There are a number of scenarios in which your business may be eligible for VAT reductions on your business energy bill:
If your average daily consumption of energy is lower than the ‘de minimis’ threshold, then you are eligible to be billed at 5% VAT on your gas and electricity bills. Your average daily usage must be no more than:
In instances where a property consumes energy for domestic or charity use as well as commercial, usage for this part of the supply will qualify for the reduced rate of VAT (5%).
Customers with qualifying use must submit separate customer declaration forms highlighting the usage figures for each supply purpose, so that we can determine what percentage of the bill is eligible for the VAT reduction.
If you are eligible for a reduced VAT rate, you must send us a fully completed VAT Declaration Certificate in advance of your first invoice to ensure the reduction is applied.
To find out if you are eligible for reduced rates please read our VAT and CCL guidance notes
Alternatively, for further information regarding VAT, contact our energy advisors on:
Fax: 0845 230 0022
Post: Gazprom Energy, 27 Quay Street, Manchester, M3 3GY
Or look up the HMRC advice centre or website: http://www.hmrc.gov.uk/or HMRC National Advice Centre 0845 010 9000