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Do I qualify for reduced VAT on business energy?
Business energy gets reduced-rate VAT if it is for domestic use, charity non-business use, or within the de minimis limit: 33 kWh a day for electricity, 145 kWh a day for gas. This checker shows your likely rate.
This checker needs JavaScript. The rules it applies are set out below.
Indicative only, not tax advice. Your supplier applies the rate; HMRC's Fuel and power (VAT Notice 701/19) has the rules.
How the VAT checker decides
- Where and which fuel. Great Britain, Northern Ireland, electricity or piped gas. The zero rate is for qualifying electricity in Great Britain only.
- Size of the supply. A supply of no more than an average of 33 kWh a day (1,000 kWh a month) of electricity, or 145 kWh a day (4,397 kWh a month) of gas, to one customer at one premises is treated as domestic use. It qualifies without a declaration (paragraphs 3.2.2, 4.2 and 5.2).
- Use above the limit. Domestic use and a charity's non-business use qualify (paragraphs 3.2 and 3.3). A mix of qualifying and business use is split, or treated as wholly qualifying if enough of it qualifies, and needs a certificate with the exact percentage (paragraphs 3.4 and 3.5). Business use only is standard-rated.
| Supply | Qualifying use | Other use |
|---|---|---|
| Electricity, Great Britain, up to 30 September 2026 | 5% | 20% |
| Electricity, Great Britain, 1 October 2026 to 31 March 2027 | 0% | 20% |
| Electricity, Great Britain, from 1 April 2027 | 5%, unless the zero rate is extended | 20% |
| Electricity, Northern Ireland | 5% | 20% |
| Piped gas, UK | 5% | 20% |
If you qualify through use rather than size, your supplier may need a VAT declaration. For the full rules and examples, read the VAT on business electricity guide. A supply that is reduced-rated for VAT is in general not charged Climate Change Levy.
Sources: Fuel and power (VAT Notice 701/19); Temporary zero rate of VAT in Great Britain for domestic electricity (tax information and impact note); Revenue and Customs Brief 10 (2026): temporary zero rate of VAT for domestic electricity in Great Britain; VAT rates (GOV.UK).