How much VAT do I pay?

Generally speaking, electricity used for commercial purposes is subject to VAT at 20%. However the actual rate you pay depends on how much electricity you use, what you use it for, and whether you are a registered charity.

Non-domestic supplies with more than 60% of their electricity used for domestic purposes can claim to pay only 5% VAT as well as any non-domestic supplies that use less than 33 units a day (around 3,000 a quarter).

To claim the lower rate of VAT, customers must fill in a VAT declaration form. Visit here to view and complete the form.