When will VAT be applied to storage facilities?

Therefore, the change introduced by the Finance Act 2012, required the standard rate of VAT to be applied to supplies of storage facilities with effect from 1 October 2012 and it is based on a more general use of the space for storage.

Are supplies of fuel and power subject to VAT?

Under the VAT Act 1994 (VATA 1994), supplies of fuel and power are subject to the standard rate of VAT unless they are eligible for the reduced rate under schedule 7A or being exported outside the UK under the conditions set out in VAT on goods exported from the UK (VAT Notice 703).

Do storage providers have to charge VAT?

However, storage suppliers such as traditional removal companies who provide no discrete area and are at liberty to move goods around have always had to charge VAT on their supplies of storage. It was clear that previous legislation had created an anomaly in the VAT treatment of storage between different storage providers.

Is electricity subject to VAT?

Supplies of electricity are subject to VAT at the reduced rate under certain conditions. Supplies of not more than an average rate of 33 kilowatt hours per day, 1,000 kilowatt hours per month, to one customer at any one of the customer’s premises qualify for this reduced rate.

When should I charge VAT on fuel and power?

If less than 60% of the fuel or power is for qualifying use, you should charge VAT at the standard rate. If you supply fuel and power for mixed use, you should obtain a certificate from your customer that declares what percentage of the fuel and power that you supply to each premises is, or will be, put to a qualifying use.

Do energy suppliers have to charge VAT?

Energy suppliers are required to account for VAT under the normal rules as the payment is made for a taxable supply of energy. Any VAT incurred by suppliers in relation to the operation of the scheme relates to the taxable supply of energy and is therefore recoverable, subject to normal rules.