CHARITY ENERGY BILLS
Embedded Files
HOW TO GET THE 5% VAT RATE
🧾 1. Check your Utility Bills
🧾 1. Check your Utility Bills
Look directly at your gas and electricity bills. Here's what to look for:
VAT rate shown: It will usually say either 5% or 20%.
Business vs. domestic use: If the usage is for non-business charitable purposes (like a community centre, care home, or food bank), it may qualify for 5% VAT.
If the bill shows 20%, the supplier likely thinks the energy is for business use.
🕔 2. Understand the Eligibility for 5% VAT
A charity can receive reduced 5% VAT if:
The energy is used solely or mainly for non-business activities.
Examples of non-business use: free services, community events, or low-fee services that don’t aim to make a profit.
Business use includes renting space out, selling goods, or commercial operations (even by a charity).
If 60% or more of the energy is for non-business use, the whole supply qualifies for 5% VAT.
🌍 3. Check for the Climate Change Levy (CCL)
CCL is an additional charge (on top of VAT) for most business energy users.
Charities that qualify for 5% VAT are also exempt from the CCL.
If the bill includes CCL, it’s a good sign the charity hasn’t been registered correctly for the lower rate.
📢 4. Submit a VAT Declaration to the Energy Supplier
If the charity is wrongly being charged 20% VAT, they can submit a VAT declaration form to the supplier to claim the reduced rate.
This is usually called a "VAT Certificate for Charities" or “VAT Declaration for Qualifying Use”.
Most suppliers have a downloadable form on their website (e.g., EDF, Octopus, E.ON).
The charity will need to state:
That your charity is registered
The percentage of energy used for non-business purposes
We can help with this. Contact us now! 😀
Page updated
Google Sites
Report abuse