VAT on Energy Queries

16/10/2015

WES Schools Finance Team

We have had a number of queries from schools about a form they have received from energy suppliers about reduced VAT for energy. This is the response from Jo Buckmaster WCC VAT Officer: 

The energy company wants to know if the school is a local authority school, an academy or a charity school (faith school/foundation school). It impacts on whether or not the school gets charged 20% or 5% on its electricity or gas bill. If charity, the school is only charged 5% VAT and they don't get charged the climate change levy on top. LA schools get charged at 20% VAT and climate change levy on top of that.

If the school is a LA school, then the school is 100% business use - for the form, no qualifying charity use.

If the school is a Voluntary Aided, Voluntary Controlled or a Foundation school then 90% of its use is for charity purposes and it needs to say this on the certificate.

If the school leases any of its premises to external before/ after school clubs or nurseries, then they will need to adjust the % to take into account the extra business income.

If you have any queries regarding VAT on Energy Jo Buckmaster would be able to offer advice. Please call 019226 412763 or email jobuckmaster@warwickshire.gov.uk