Supplies of fuel and power
Obtaining supplies at the reduced rate of VAT
Education and training providers can issue a certificate to their suppliers to obtain fuel and power at the reduced rate of VAT (currently 5 per cent) if the supply is for a qualifying use. Qualifying use means:
- domestic use (including certain residential accommodation); or
- use by a charity for its non-business activities - see VATEDU68500, VATEDU25000 and the Charitable status section of VATED85000.
|### If…||### and…||### then…|
|the provider uses the fuel and power partly for a qualifying use||at least 60% of the use is for that purpose||it can receive all its supplies at the reduced rate.|
|less than 60% of the use is for that purpose||it must apportion between qualifying and non qualifying use.|
You can find more about this relief in Notice 701/19 VAT: Fuel and power.