- HMRC updated Notice 701/19: Fuel and Power.
- The notice explains how to treat fuel and power supplies for VAT purposes.
- The update provides more detail on supplies for domestic use.
- Supplies of fuel and power for domestic use are eligible for the reduced rate of 5%.
- The provider must be certain the supply is to a dwelling or certain types of residential accommodation.
- Examples of allowed residential accommodation include: armed forces residential accommodation, caravans, children’s homes, homes providing care for the elderly or disabled, houseboats, houses, flats, hospices, institutions where at least 90% of residents live, monasteries, nunneries, school and university residential accommodation, and self-catering holiday accommodation.
- Buildings not considered residential accommodation include: hospitals, prisons, hotels, and inns.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
