A VAT declaration tells your energy supplier that some or all of your energy qualifies for a lower rate of VAT, and without one you'll usually pay the standard 20%. HMRC says a declaration isn't a legal requirement, but it's the usual way to show qualifying use, and many suppliers charge new business customers 20% until they get one. Most suppliers have their own form, and you need a separate declaration for each premises. The same declaration also stops you paying the Climate Change Levy on that energy.
What is a VAT declaration?
It's a signed statement you send to your energy supplier, saying how much of the energy at a premises is for qualifying use. HMRC calls it a VAT certificate. Your supplier uses it to charge the right rate of VAT and keeps a copy in case HMRC asks to see it.
Do you need one?
| Your situation | Declaration needed? |
|---|---|
| Residential accommodation, such as a care home, children's home, hospice, self-catering holiday let or caravan | Yes |
| A charity using energy for activities it doesn't charge for | Yes |
| Mixed use, such as a shop with a flat upstairs | Yes, stating the share that qualifies |
| A small site using no more than 33 kWh of electricity or 145 kWh of gas a day on average | No, because the lower rate applies automatically |
| Business use only, including hotels, inns and guest houses | No, because your energy doesn't qualify |
What goes on the form
Every supplier's form looks different. HMRC sets out the core details a declaration must include, and most suppliers ask for a few more, such as your account or meter numbers. Have these ready:
- your business or organisation's name and address;
- your VAT registration number, if you have one, and your charity registration number if you're claiming as a charity;
- the address of the premises, and the account or meter numbers it covers;
- the exact percentage of energy used for qualifying use;
- a signature from someone responsible, such as an owner, director or trustee, with their name, position and the date;
- a statement that you've read HMRC's guidance and will tell your supplier if your qualifying use changes.
You need a separate declaration for each premises, and many suppliers also want separate forms for electricity and gas.
How to work out your percentage
HMRC doesn't set a method, but you must give an exact figure and keep your workings, which your supplier may ask to see. Use the most accurate figure you have, for example:
- separate meters or sub-meters for the qualifying part of the building;
- floor area: the share of the building used for qualifying purposes;
- hours of use: for a building used for different things at different times, such as a hall.
Give the exact percentage even if it's 60% or more, because your supplier applies the 60% rule itself. At 60% or above, all the energy gets the lower rate, but below 60%, only the qualifying share does.
Example: a shop has a flat upstairs on the same meter, and the flat makes up 40% of the floor area, so the declaration says 40%. Because that's under 60%, 40% of the energy gets the lower rate and the rest is charged at 20%.
If the whole premises qualifies, such as a care home with no business areas, the percentage is simply 100%.
Where to find your supplier's form
Most suppliers want you to use their own form. Here's where three large suppliers keep theirs:
VAT declaration forms by supplier
| Supplier | How to send it |
|---|---|
| EDF | Download the declaration from EDF's VAT for business pack and email it to EDF's VAT and CCL team, using a separate form for electricity and gas. |
| British Gas | Fill in the online form in your business account or download the form, using a separate one for electricity and gas. |
| Octopus Energy | Fill in Octopus's online form. |
For any other supplier, search its business website for "VAT declaration" or ask its customer service team for the form.
What happens after you send it
Your supplier checks the declaration, which can take a few weeks. British Gas, for example, aims to review declarations within 28 days.
When the lower rate starts depends on your supplier. Some apply it from the date they receive a valid declaration, while others correct past bills too, so either way it's worth sending yours as soon as you can.
Why declarations get sent back
- a missing signature, date or position;
- a missing VAT or charity registration number;
- a percentage with no workings behind it, on a mixed-use claim;
- one form covering several premises, or both electricity and gas when the supplier wants them separately.
When to send a new one
- you switch supplier: the declaration is made to one supplier, so the new one needs its own;
- you move premises, or add a new one;
- the way you use the building changes, and with it your percentage.
Declarations don't move with you when you change supplier, so if you compare business energy prices and switch, send your new supplier a new declaration.
From 1 October 2026 to 31 March 2027, the lower rate on electricity in Great Britain is 0%. You don't need a new declaration for it: if your supplier already charges you the lower rate, the change happens automatically.
How to send a VAT declaration
- Check you qualify. Use the table above, and if your site uses very little energy, you don't need to do anything.
- Find a recent bill for each premises. Note down your supplier, account number and meter numbers.
- Work out your percentage. Use meters, floor area or hours of use, and keep your workings.
- Get your supplier's form. You'll need one for each premises, and one for each fuel if your supplier asks.
- Fill it in, sign it and send it. Keep a copy for your records.
- Check your next bills. The qualifying share should show the lower VAT rate and no Climate Change Levy. If nothing has changed after a few weeks, chase your supplier.
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Questions about VAT declarations
Where do I get an EDF VAT declaration form?
It's in EDF's VAT for business pack, on the EDF website. Once you've filled it in, email it to EDF's VAT and CCL team, using a separate form for electricity and gas.
Where do I get a British Gas VAT declaration form?
You can fill it in online in your British Gas business account, or download it from British Gas's business VAT page.
Who qualifies for the lower rate of VAT on electricity?
The lower rate covers energy used in residential accommodation (such as care homes and self-catering holiday lets), by a charity for activities it doesn't charge for, and at very small sites. Hotels don't qualify.
Do charities pay VAT on electricity?
It depends on what the energy is used for. A charity pays the lower rate on energy it uses for activities it doesn't charge for, once it has sent a declaration. On electricity in Great Britain, that rate is 0% from 1 October 2026 to 31 March 2027. Energy for activities it does charge for is usually charged at 20%.
Does a VAT declaration expire?
No, there's no set expiry date. You must tell your supplier if the way you use the building changes, though, and send a new declaration if you switch supplier or move.
Can I get VAT back on past bills?
It depends on your supplier, so it's worth asking. Some correct past bills once they have your declaration, while others only apply the lower rate from the day they receive it.
Sources
- HMRC, VAT on fuel and power (VAT Notice 701/19): what a declaration must include, keeping your workings, the 60% rule, the small-site limits and the temporary 0% rate on electricity in Great Britain.
- HMRC, VAT Fuel and Power manual VFUP2530: certificates are the usual evidence of qualifying use but not legally required; many suppliers standard-rate new non-domestic customers until they receive one.
- EDF, VAT for business pack: EDF's form, separate declarations for electricity and gas, and how to send it.
- British Gas, VAT on business energy bills: the online and download forms, review time, when the lower rate starts, and sending a new declaration after a switch or move.
- Octopus Energy, how to claim reduced VAT and CCL: Octopus's online form.