SolvedVWASS5300 | Supplies made in connection with water and sewerage services: liability of connection charges for replacement water supplies
From HM Revenue & Customs · VAT Water and Sewerage Services
Any repairs, alterations or replacements carried out to existing pipe work of a water supply are standard rated.
The following table gives examples of the VAT liability of the connection charges for replacement supplies of water.
| Supply | Liability |
| Replacement of lead piping or damaged pipe work | Separate standard-rated supply |
| Water usage increases requiring a new additional mains connection. | Separate standard-rated supply |
| Water usage increases and existing mains connection is replaced with a new, larger capacity mains connection | Separate standard-rated supply |
| Relocation of existing water service pipe | Separate standard-rated supply |
| Existing building is demolished and replaced by new property or properties not being used for a relevant industrial activity. | Zero-rated, as being incidental to the new water supply |
| Property, not being used for a relevant industrial use, is on an existing common water supply and requires its own separate supply. | Standard-rated |
| Property is divided into multiple properties not being used for a relevant industrial purpose. | If there is still one water connection shared by the individual properties, the supply is standard-rated. Otherwise zero-rated. |
| Reconnection charges for existing properties | Standard-rated |