VWASS2100 | Supplies of water: basic position

The basic position under the law (VATA 1994 Schedule 8 Group 2 Item 2) is that supplies of water are zero-rated (see VWASS1000) unless:

• they are used in connection with the carrying on of a “relevant industrial activity” (see VWASS2200), or

• they fall under one of the excepted items to zero-rating listed in the law. These are:

1. distilled water, deionised water and water of similar purity (see VWASS2500),

2. bottled water for human consumption - (see VWASS2500), and

3. water which has been heated so that it is supplied at a temperature higher than that at which it was before it was heated - (see VWASS4000).