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HMRC internal manual

VAT Water and Sewerage Services

From
HM Revenue & Customs
Updated
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Introduction: UK law

The relevant legislation for supplies of water and sewerage services is:

  • VAT Act 1994, section 30, which holds that goods and services described in Schedule 8 to the Act are zero-rated,
  • VAT Act 1994, Schedule 8, Group 2 (as amended by SI 1996/1661), which specifies when water and sewerage services are zero-rated,
  • VAT Act 1994, section 29A (as inserted by the Finance Act 2001), which holds that goods and services described in Schedule 7A are reduced-rated,
  • VAT Act 1994, Schedule 7A, Group 1(e), which specifies that supplies of heat for a qualifying use are reduced-rated.