VAT – natural gas, heat and cooling
Suppliers, importers and VAT registered recipients of natural gas, heat and cooling need to be aware of new VAT information sheet (21/10). It is entitled ‘Place of supply of natural gas and electricity (also heat and cooling)’ and replaces the old sheet (10/04).
The new information sheet is intended to provide details on a number of minor changes to existing rules and an extension of the arrangements to cover heat and cooling, both effective from 1 January 2011.
The main changes relate to:
- The place of supply rules extend to heat and cooling supplied via networks. This covers communal heating and air-conditioning systems which, in some EU countries involve cross- border supplies.
- For natural gas the rules extend to all types of pipeline (including storage facilities), but only where the pipeline is located within the EU or is linked to a system within the EU.
- The relief from VAT at importation extends to all imports of natural gas via the UK natural gas system (including wet gas and liquid natural gas imported by tanker).