Energy Bills Rebate

(asked on 20th February 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make a comparative assessment of the potential merits of providing payments through the Energy Bills Support Scheme (a) after and (b) before the application of VAT.


Answered by
Victoria Atkins Portrait
Victoria Atkins
Secretary of State for Health and Social Care
This question was answered on 27th February 2023
Whether VAT applies to the payment made under the Energy Bills Support Scheme is determined by VAT legislation. Under the Scheme, the government is paying £400 of the domestic customer’s energy bills. Payments made under the scheme into the customers energy account are regarded as third-party payments from the government. Energy suppliers are required to account for VAT at the reduced rate of five percent under the normal rules, as the payment is made for a taxable supply of energy. There are no plans to review the VAT legislation.
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