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HMRC internal manual

VAT Place of Supply (Goods)

HM Revenue & Customs
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Gas and electricity: Other aspects

Services relating to gas or electricity distribution systems

Before 1 January 2010, supplies of services relating to natural gas or electricity distribution systems fell within Schedule 5, VAT Act 1994. They are now subject to the general place of supply rule for services You can find out more about this in VAT Information Sheet 21/10: Place of supply of natural gas and electricity (also heat and cooling).


Imports of electricity and natural gas (including natural gas arriving in liquid form by tanker) are relieved from VAT at importation by the VAT (Imported Gas, Electricity, Heat and Cooling) Relief Order 2010 (see VATPOSG5220).

To claim the relief importers are required to submit an import entry using the following Commodity Codes:

271121 00 00 Natural gas in gaseous state
271600 00 00 Electricity

Supplies within the EC

See the manual covering the Single Market,VATSM, for details of the treatment of natural gas and electricity under the normal rules governing intra-EC supplies.