HMRC have published 'Revenue & Customs Brief 10 (2026): Temporary zero rate of VAT for domestic electricity in Great Britain’. It specifies how the temporary zero rate of VAT for qualifying supplies of electricity in Great Britain will operate.
As announced in July 2026, qualifying supplies of electricity in Great Britain (England, Wales and Scotland) will be zero-rated between 1 October 2026 and 31 March 2027.
- For Northern Ireland, the reduced rate of 5% remains.
- Other fuel types are unaffected by the change.
Qualifying supplies include electricity supplied for domestic use or for a charity's non-business use.
- If a supply of electricity would previously have qualified for the reduced rate of VAT, the supply will be charged at 0% while the rate reduction is in effect.
- VAT Notice 701/19, Fuel and Power, provides further information on qualifying use.
Suppliers are to determine the VAT liability of supplies based on the date the energy is consumed.
- HMRC recommends suppliers use meter readings to do this.
Useful guides on this topic
VAT: What's new 2026-27?
What's new in VAT for 2026-27? What are the recent cases? What policy changes have HMRC announced?
A beginner's guide to VAT
VAT: Where do I start? What is VAT? Who has to register for VAT? What rate should I charge? How do I calculate VAT? When are my VAT filing obligations?
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