HMRC has updated Notice 701/19 relating to the treatment of fuel and power for VAT purposes entitled 'Fuel and Power'. The notice cancels and replaces the previous version published in November 2022. 

The notice covers how supplies of fuel and power should be treated for VAT purposes. The updated notice includes clarification of the requirement for certificates by charities. The levy does not apply to taxable commodities used by domestic consumers, or by charities for non-business use.

The notice also covers the following:

• An overview of the VAT liability of fuel and power.
• What is qualifying use?
• Separate chapters relating to specific supplies of fuel and power including gases, electricity, oils, solid fuels, steam and heated water, ventilation and refrigeration.
• How to apply the reduced rate to transactions.

Source: New feed