VAT on power bill
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Discussion

Mercdriver

Original Poster:

3,000 posts

64 months

Sunday 30th April 2023
quotequote all
Checked latest bill from EDF to see that they calculated the bill then deducted the government discount.

I would think they should deduct the discount then calculate the bill to avoid paying VAT on the discount.

Wrote to MP and surprise surprise got a typical reply from a politician which does everything except answer the question.

Why should the deduct the discount after calculating the bill, anyone on here experienced on VAT who can give me an explanation

g7jtk

1,845 posts

185 months

Sunday 30th April 2023
quotequote all
I thought vat was for luxury items.
These days I would have thought fuel and power should be considered a necessity.

Sheepshanks

41,315 posts

150 months

Sunday 30th April 2023
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Mercdriver said:
Checked latest bill from EDF to see that they calculated the bill then deducted the government discount.

I would think they should deduct the discount then calculate the bill to avoid paying VAT on the discount.

Wrote to MP and surprise surprise got a typical reply from a politician which does everything except answer the question.

Why should the deduct the discount after calculating the bill, anyone on here experienced on VAT who can give me an explanation
It's not a discount.

gmasterfunk

482 posts

179 months

Sunday 30th April 2023
quotequote all
Regulation 5.-6.(3) of The Energy Bills Support Scheme and Energy Price Guarantee Pass-through Requirement (England and Wales and Scotland) Regulations 2022 would seem to apply?





Simpo Two

93,053 posts

296 months

Sunday 30th April 2023
quotequote all
g7jtk said:
I thought vat was for luxury items.
These days I would have thought fuel and power should be considered a necessity.
Be grateful Purchase Tax was abolished! https://en.wikipedia.org/wiki/Purchase_Tax

Condi

20,539 posts

202 months

Monday 1st May 2023
quotequote all
Sheepshanks said:
It's not a discount.
This, basically. It's support with the bill, not a discount on the energy used, and the way it's applied is simply as a credit to your account, same as if you upped the direct debit. What EDF have done is correct.

Condi

20,539 posts

202 months

Monday 1st May 2023
quotequote all
g7jtk said:
I thought vat was for luxury items.
These days I would have thought fuel and power should be considered a necessity.
VAT of 5% on domestic energy.