VWASS5700 | Supplies made in connection with water and sewerage services: infrastructure charges

The Water Industry Act 1991 allows water companies to make various charges to persons who wish to connect to their water and sewerage networks. Infrastructure charges are designed to contribute to the cost of meeting the additional demand that each new connection makes to the water and sewerage system networks. These charges are distinct from water and sewerage connections and as they relate to the system as a whole and do not confer any direct benefit are considered to fall outside the scope of VAT.