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VATEDU90000 | Supplies of fuel and power

From HM Revenue & Customs · VAT Education Manual

Obtaining supplies at the reduced rate of VAT

Education and training providers can issue a certificate to their suppliers to obtain fuel and power at the reduced rate of VAT (currently 5 per cent) if the supply is for a qualifying use. Qualifying use means:

  • domestic use (including certain residential accommodation); or

  • use by a charity for its non-business activities - see VATEDU68500, VATEDU25000 and the Charitable status section of VATED85000.

If the provider uses the fuel and power partly for a qualifying use, and

  • at least 60% of the use is for that purpose, then it can receive all its supplies at the reduced rate.

  • less than 60% of the use is for that purpose, then it must apportion between qualifying and non qualifying use.

You can find more about this relief in Notice 701/19 VAT: Fuel and power.