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Posted Tue, 22 Jun 2021 09:42:04 GMT by niriaic
Hi - We are a non-profit (industrial and provident society) providing housing at social rents to low income groups. We are a registered social landlord. We buy business gas for a communal boiler which provides heating and hot water to the flats, which we recharge at cost. We also supply gas for cooking to the flats again at cost. 3% of floor area served by the gas and network is non-domestic. This is non-profit use (communal laundry again charged at cost and our office). We buy business electricity to light the communal areas, run the lift and the heating plant. We know we are CCL exempt for the gas, but are we eligible for VAT at the reduced rate also? We are not a registered charity because it would mean we would then not be self-governing. Thank you in advance for your help.
Posted Wed, 23 Jun 2021 12:06:33 GMT by HMRC Admin 9

Please see the following link for full information on when fuel and power can be reduced rated:

Fuel and power (VAT Notice 701/19)

Ordinarily, the reduced rate only applies to domestic use or charity non-business use. However, it can also apply if the supply is below de minimus limits. 

Thank you. 
Posted Thu, 24 Jun 2021 11:48:13 GMT by niriaic
Hi There - thanks for taking the time to reply. Yes, I read this note before posting and it was not clear where we sat within this. It's not straight into domestic premises - it goes via a business that is registered with the FCA. That business is not a charity. It is an an industrial & provident society that reinvests all surplus in the mission of provision of social housing to low income groups. The energy downstream is supplied >95% to domestic premises. We recharge the energy at cost. It feels like we should be reduced VAT. If we got rid of our boiler and installed boilers in all the flats, it would be, but we can't. We're a heritage listed building that can't take 34 flues out throught the walls. Thanks again in advance
Posted Tue, 29 Jun 2021 12:41:31 GMT by HMRC Admin 17

If the conditions in the notice are not met then reduced rating cannot be applied by the supplier.
Unfortunately, there are no exceptions to this, regardless of the situation.

Thank you. 

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