Temporary zero rate of VAT for domestic electricity in Great Britain
Published 8 September 2026
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This publication is available at https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2026-temporary-zero-rate-of-vat-for-domestic-electricity-in-great-britain/temporary-zero-rate-of-vat-for-domestic-electricity-in-great-britain
Purpose of this brief
This brief explains a temporary zero rate of VAT for domestic electricity and other qualifying supplies in Great Britain (England, Scotland and Wales). The relief applies from 1 October 2026 to 31 March 2027.
Who should read this brief
You should read this brief if you are:
- an energy supplier
- a VAT advisor
Background
On 21 July 2026, the government announced a temporary zero rate of VAT for qualifying supplies of electricity in Great Britain.
The temporary zero rate applies from 1 October 2026 to 31 March 2027. During this period, qualifying supplies of electricity in Great Britain are liable to VAT at 0%. Other fuel types are not affected by this change.
In Northern Ireland, qualifying supplies of electricity remain liable to VAT at the reduced rate of 5%.
Qualifying supplies
There are no changes to the supplies of electricity that qualify for relief.
Qualifying supplies include electricity supplied for domestic use or for a charity’s non-business use. For more information on qualifying use, read section 3 of Fuel and power (VAT Notice 701/19).
Supplies of electricity in Great Britain that would previously have qualified for the reduced rate of VAT will be charged at 0% from 1 October 2026 to 31 March 2027.
Time of supply
Where a billing period includes 1 October 2026, suppliers may determine the VAT liability of supplies based on the date the energy is consumed.
HMRC recommends using meter readings to work out how much of a supply is subject to each VAT rate. Other methods may be used if they produce a fair and reasonable outcome.
Suppliers should keep clear records of when they apply the reduced rate and account for any adjustments in line with the normal VAT accounting rules.
More information
Fuel and power suppliers should continue to use Fuel and power (VAT Notice 701/19) to determine whether or not supplies qualify for the relief.