Water charges

Water charges – including heated water

Services of treatment of foul water or sewerage is a zero rated supply.

The supply of water is also zero rated, however, if the supply is to a “relevant Industrial Activity” – which includes energy and water supply industries is standard rated.

Other services related to supplying water – usually done at the customer’s request are standard rated.

The supply of heated water (supplied at a temperature higher than before it was heated) is not considered to be a supply of water but the supply of heat.  It would normally be standard rated but under the charities exemption could attract the reduced rate of VAT