Heating Oil VAT Remains 5%

It has been reported recently that you will pay more for your heating oil because of the VAT rise at the start of 2011. I am pleased to reassure anybody who might be worried about this, that the VAT rate for heating oil is unchanged at 5% (for domestic and residential use or for non-business use by a charity).

The HM Revenue & Customs website specifies all VAT rates on the page: Rates of VAT on different goods and services (Power, utilities, energy, heating and insulation) and the relevant notice is VAT Notice 701/19. It also specifies that "fuel for business use is usually standard-rated".

It is also worth noting that energy-saving materials are also charged at the unchanged VAT rate of 5%. This includes central heating, wood-fuelled boilers, micro-CHP, draught-proofing, insulation and renewable-energy generation systems.


2 Comments

by Linda Wallington on 09 February 2011 Reply
Is the VAT on heating oil 5% however much you buy?

Thank you

by S Gray on 10 January 2011 Reply
It used to be the case that businesses, whose usage of gas, electricity or oil was below a certain level, qualified for the 5% reduced rate. Does this still apply?
by John Swindells on 10 January 2011 Reply
The HM Customs VAT notice 701/19 states that "Supplies of not more than 2,300 litres of fuel oil, gas oil or kerosene are subject to the reduced rate" which I assume applies to businesses as well as homeowners. This rule applies to all deliveries made to one site on the same day.

Add your comment

Join the New Heating Oil community on Google+

Related Reading

Buying Oil: Your Situation
When did you last buy oil?





Survey Results For US