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HMRC internal manual

VAT Water and Sewerage Services

From
HM Revenue & Customs
Updated
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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.

Supply Liability
   
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