If your electricity or gas supply is used solely for business or non-domestic purposes, VAT will usually be charged at the standard rate and CCL (plus VAT on CCL) will also be added to the bill.
Low usage business or non-domestic use:
Under a government concession, ‘low usage’ of electricity and gas for business or non-domestic purposes is chargeable at the reduced rate of VAT. These supplies are automatically excluded from CCL. The low usage thresholds are:
• electricity – at or below 33 kWh per day during the bill period
• gas – at or below 145 kWh per day during the bill period
There is no requirement for the customer to claim the reduced rate of VAT or exclusion from CCL on low usage as these concessions are applied automatically at the time of each billing. If consumption on a meter is close to the above thresholds, VAT charges may vary during different bill periods.
Domestic or charitable non-business use:
If your electricity or gas supply is used wholly or partly for domestic or charitable non-business purposes, that part of the supply qualifies for the reduced rate of VAT and for exclusion from CCL. To claim this exemption, you would have to complete a VAT declaration form and submit it to your energy supplier.