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Business utilities VAT for commercial gas and electricity

Some organisations qualify for discounts and a reduced business utilities VAT amount…

Levied by the government for a range of goods and services, business utilities VAT is naturally applied together with other levies and taxes. Not only does this underscore the importance of finding the best contract tariffs for your business, but it highlights the benefit of having an energy consultant to ensure the accuracy of the tax associated with your bills.


Find out if your organisation qualifies for business utilities VAT exemptions/discounts

All businesses pay VAT on their energy accounts – normally in the region of 20% – but some organisations qualify for discounts and a reduced VAT amount. If your business falls into one of the following categories, it may qualify for discounts and reduced VAT rates:

  • If you meet the de minimis requirements for low consumption;
  • If your premises are commercial and non-commercial and the majority of your usage is non-commercial;
  • You are a charity or not-for-profit organisation.

Reduced VAT should be incorporated into your energy bill, but this is something that should be regularly checked to ensure you are paying the correct rate. If you qualify for a VAT reduction, it is likely your business also stands to be exempt from the main Climate Change Levy (CCL) rate. This encourages energy efficiency and urges reduced gas emissions for businesses.

How Smarter Business can help

Smarter Business has the expertise to advise your business on its VAT, tax, and levy standing. We are here to help you find out about your eligibility for reductions and exemptions, assist with applications, and claim back in the event of overcharging. Contact Smarter Business today – your single source of utilities solutions.

Speak to one of our Business Utilities VAT consultants