Value Added Tax (VAT)
VAT is a government-imposed tax on the supply of goods and services. There are currently 2 rates of VAT applicable to supplies of electricity and gas - the standard rate and the reduced rate. On supplies used solely for business purposes, VAT will usually be charged at the standard rate. Where supplies are wholly or partly for domestic or charitable non-business use, that part of the supply qualifies for the reduced rate of VAT. This is known as 'qualifying use'. Customers with qualifying use will need to submit a VAT Customer Declaration Certificate for each site, to advise us what percentage of the supply meets the qualifying criteria set by HM Revenue and Customs (HMRC). Please note that VAT Declaration Certificates are not transferable between suppliers.