Supplies made in connection with water and sewerage services: liability of connection charges for replacement water supplies
Any repairs, alterations or replacements carried out to existing pipe work of a water supply are standard rated.
The following table gives examples of the VAT liability of the connection charges for replacement supplies of water.
|Replacement of lead piping or damaged pipe work||Separate standard-rated supply|
|Water usage increases requiring a new additional mains connection.||Separate standard-rated supply|
|Water usage increases and existing mains connection is replaced with a new, larger capacity mains connection||Separate standard-rated supply|
|Relocation of existing water service pipe||Separate standard-rated supply|
|Existing building is demolished and replaced by new property or properties not being used for a relevant industrial activity.||Zero-rated, as being incidental to the new water supply|
|Property, not being used for a relevant industrial use, is on an existing common water supply and requires its own separate supply.||Standard-rated|
|Property is divided into multiple properties not being used for a relevant industrial purpose.||If there is still one water connection shared by the individual properties, the supply is standard-rated. Otherwise zero-rated.|
|Reconnection charges for existing properties||Standard-rated|