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.
UK temporary VAT rate cut for the hospitality and tourism sectors
The UK has implemented a temporary VAT rate cut from 20% to 5% for the hospitality and tourism sectors following the coronavirus crisis, to apply until 12 January 2021. UPDATE: Since this VAT alert was published, the 5% temporary VAT rate was extended to 30 September 2021. In addition, from 1 October 2021 a new temporary reduced VAT rate of 12.5% was introduced (see our blog article "New VAT rate for hospitality and tourism with effect from 1 October 2021" for further information).
15 July 2020| CATEGORIES: Covid measures, VAT rates
