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.


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.

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