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What goods are covered by the reduced rate?

»Ê¹ÚÌåÓýapp reduced rate applies to supplies of fuel and power listed under VAT Act 1994, Schedule 7A, Group 1.

This covers a wide range of fuels used within homes.

Matches

Supplies of matches are not for qualifying use in any circumstances and cannot be reduced-rated. »Ê¹ÚÌåÓýapp deeming provisions (VFUP2310) and 60% rule (VFUP2500) do not apply to such supplies. »Ê¹ÚÌåÓýapp VAT Act 1994 (Schedule 7A, Group 1, Note 1(1)) reads as follows:

1(1) Item 1(a) shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.

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Road fuel

Supplies of any gas or oil products to be used as road fuel are not for qualifying use in any circumstances and cannot be reduced-rated. VAT Act 1994 (Schedule 7A, Group 1, Notes 1(2) and 1(3)) refer. »Ê¹ÚÌåÓýapp deeming provisions (VFUP2310) and 60% rule (VFUP2500) do not apply to such supplies, nor are they subject to Climate Change Levy (CCL) - see VFUP5000.

For an explanation of the exceptions in Notes 1(3)(a) and 1(3)(b) see VFUP4000.

A growing number of cars are becoming capable of running on gas. »Ê¹ÚÌåÓýappse cars often have a dual-fuel capability, retaining the ability to use petrol or diesel.

Usually the fuel is bought at filling stations in the normal way, but a few owners have had homefill facilities installed in their private garage. This enables the owner to use natural gas to refill the fuel tank overnight at home. A separate meter situated in the garage will indicate the quantity of fuel used for this purpose.

Where gas piped directly to a customer’s home is used partially to fuel a car and partially for domestic purposes, the supply should be apportioned accordingly.

»Ê¹ÚÌåÓýapp gas is also liable for excise duty. VAT is due on the duty-inclusive value. In this situation, it is the homeowner who is responsible for accounting for the excise duty. »Ê¹ÚÌåÓýappre is more information about this in .