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HMRC internal manual

VAT Water and Sewerage Services

From
HM Revenue & Customs
Updated
, see all updates

Supplies made in connection with water and sewerage services: water efficiency measures

Water companies sometimes give items such as water hippos, shower restriction flows etc. free to domestic customers in an effort to save water and meet OFWAT targets. As they are given free of charge, no VAT is due on these supplies, but because the input tax is incurred in the course or furtherance of their business, they are entitled to claim the input tax on them.