United Kingdom: HMRC VAT Notice 701/19 – Application of VAT on Fuel and Power

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HMRC updated VAT Notice 701/19 to incorporate details about VAT liability for payments made under the schemes to subsidize energy bills. The notice explains how users and suppliers should handle the supply of fuel and electricity and other suppliers related to power and electricity when figuring out how to treat VAT correctly.


The guide consists of the following topics:


  • The general concept of VAT law for suppliers and users of fuel, power, and other secondary supplies
  • VAT liability on the supply of fuel and power, including reverse charge measure for VAT on wholesale, electricity, and construction services
  • Supplies that are VAT exempt
  • Application of the reduced VAT rate to domestic and charitable purposes, and
  • VAT treatment applies to the supply of gasses, electricity, oil, solid fuels, steam, heated water, ventilation, and refrigeration as an ancillary supply of energy and power



Source: gov.uk

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