Energy

The University pays 5% VAT on fuel and power if it is used for:

• residential accommodation  
• charitable non-business activities (e.g. research)

If less than 60% of the fuel and power is for something that qualifies, the university has to pay the reduced rate of VAT on the qualifying part and the standard rate (20%) on the rest.

Generation tariff versus export tariff

A generation tariff is not consideration for a supply and is therefore outside the scope of VAT. However, an export tariff is consideration for supplies of electricity and such supplies are a taxable supply for VAT purposes if made in the course of business.