VAT on business energy

Most businesses are charged VAT at the current rate of 20% for business energy. As your energy supplier, we’ll set up your account on the current rate and this will be charged on your gas bills.

That said, may be eligible to pay the lower, domestic VAT rate of 5% depending on the type of business you own and the way you use energy. See below if you quality for the reduced rate.

Can a reduced VAT rate apply to my energy bills?

Your business might be eligible for a reduced rate of VAT at 5% on energy supplied by us if any, or all of the following circumstances apply…

It’s a charitable or non-profit organisation

You may be able to claim a rebate for up to 12 months from the date we receive a valid VAT Certificate.

 

Some of your energy is used for domestic purposes

If your business uses energy for residential purposes such as a care home or student accommodation, the proportion of energy used for domestic reasons will quality for 5% VAT.

If more than 60% of your business energy is used for domestic reasons, the 5% rate of VAT will apply to the whole bill.

 

You’re using a ‘low’ amount of energy

When your average daily consumption of energy is not more than the ‘de minimis’ limits set out by HMRC, then you are eligible to be charged 5% VAT on your gas and electricity bills.

Your average daily use must be no more than: 145 kWh  or 5 therms (4397 kWh per month or 150 therms) of business gas.

Finally, do let us know if we supply your energy to multiple sites within the same geographical compound (i.e. if one building serves the other in some necessary or reasonably useful way), as it may be possible to group these together for De-minimus calculation purposes.

Believe you are eligible to claim lower VAT? 

Use the below form to provide us details. Please note, we only validate the information given to us. If you are unsure about your eligibility, please contact HMRC for more information.

What our customers say

Since using Crown we have developed the Connections and Metering side of the business to support our growing client base which we are delighted with, the service provided by the team is invaluable and we look forward to working with Crown Gas & Power on future projects.

Robert - Broker

Crown Gas & Power have provided a user friendly end to end gas metering and supply service that has taken the stress out of getting new supplies up and running for our clients.

Richard - Broker

Categorically an outstanding, dedicated, professional albeit friendly sitework team who have proactively worked with us to deliver substantial results.

Katie - Broker