Energy VAT Rates
How much VAT should I be paying on my business energy?
Your business may only need to pay 5% rate of VAT on your invoices, compared to the standard 20% rate - depending on your status.
- These businesses are typically non-profit making such as a charity, hospital etc
- To find out if you qualify, please contact HMRC
- If you qualify, you can download and complete a VAT Declaration form
- Once completed, please email this to Connect with the subject line 'VAT Declaration form' and we'll adjust your next invoice to reflect your new VAT rate
5% VAT as standard on my gas invoice
Your organisation can be automatically charged 5% VAT if your site(s) consumes below 4,397kWh of gas in any given month (at account level). We'll automatically calculate this on your gas invoice.
5% VAT as standard on my electricity invoice
Your business can be automatically charged 5% VAT if your site(s) consumes below an average of 33 units per day each calendar month. We'll automatically calculate this on your electricity invoice.