Updated fuel and power notice
HMRC have updated Notice 701/19 relating to the treatment of fuel and power for VAT purposes. The notice cancels and replaces the previous version published in January 2002.
The ‘Fuel and Power’ notice explains how supplies of fuel and power should be treated for VAT purposes. It has been updated to explain the treatment of supplies of heavy oil for private pleasure craft and kerosene for private pleasure-flying after 1 November 2008.
The notice also covers the following:
- An overview of the VAT liability of fuel and power
- What is qualifying use?
- Separate chapters relating to specific supplies of fuel and power including gases, electricity, oils, solid fuels, steam and heated water, ventilation and refrigeration
- How to apply the reduced rate to transactions.