As previously announced, the rate of VAT on domestic supplies of electricity (except in Northern Ireland) will be reduced to 0% from 1 October 2026 until 31 March 2027.
“Domestic supply” includes electricity supplied for use in residential buildings and for a charity’s non-business use. Small supplies of electricity are always treated as domestic even when they are supplied to a business. Before 1 October 2026 domestic supplies of electricity are liable to VAT at 5%. See VAT Notice 701/19 for more details on which supplies qualify as domestic use.
Note that the VAT reduction applies to supplies of electricity only.
Domestic supplies of gas and other fuels will remain liable to VAT at 5%.