Charities and VAT

Reduced VAT on fuel for charities: you could qualify for a reduced rate of 5% - less than a third of the standard rate!

The standard business rate of VAT on electricity and gas bills is 17.5% (£17.50 for every £100). But did you know that charities can apply to get a lower rate of 5% (£5 for every £100)?

The lower rate isn’t a secret – but few voluntary organisations seem to know about it!

You need to apply to get the reduced rate – your electricity and gas company won't give it to you automatically.

How to apply
• Contact the company (or companies) that provide your electricity and gas;
• explain that you’re a charity, and want to apply for the charity rate of VAT on fuel;
• ask them to send you a Certificate of VAT Declaration;
• fill in the VAT declaration, and send it back to your electricity/gas company.