VAT Fuel Costs

Is your business paying too much VAT on your energy bills? If you’re an accommodation provider in the UK, you could be eligible to pay a reduced rate of VAT on your gas and electric bills. Your business can qualify if your electricity or gas supply is used for domestic or charitable non-business purposes, that part of the supply qualifies for the reduced rate of VAT and is in exclusion from CCL. The following types of supply are considered domestic use:
  • Residential caravans
  • Self catering caravans
  • Shower/toilet blocks available on campsites/caravan parks
  • Self-catering holiday accommodation
  • Staff residential accommodation in a hotel or B&B
The percentage of qualifying use does vary and you may need to submit separate forms per fuel and per account to advise what percentage meets the qualifying criteria. For more information about the reduced rates available or to apply, visit the HMRC website here.
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