Domestic Electricity to be Zero-rated
24 July 2026| CATEGORIES: domestic electricity, VAT rates, zero rate| TAGS: domestic electricity, VAT rate cut, zero rate
The UK Government has announced plans to remove VAT from domestic electricity bills from 1 October 2026. Qualifying domestic electricity supplies will become zero-rated for VAT purposes, replacing the current reduced rate of 5%. Energy suppliers will need to consider how the change will affect invoicing, contracts, VAT reporting, systems configuration and customer communications.