vat

Do I pay VAT on my water bills? 

Some non-household customers pay Value Added Tax (VAT) on water bills. VAT is chargeable to customers who have a SIC classification between 1 and 5 of the 1980 edition of Standard Industry Classifications. VAT will be charged if your business falls into one of the following categories: 

  • Division 1 – Energy and water supply industries 

  • Division 2 – Extraction of minerals and ores other than fuels; manufacture of metals, mineral products and chemicals. 

  • Division 3 – Metal goods, engineering and vehicle industries. Manufacture of metal goods not elsewhere specified. 

  • Division 4 – Other manufacturing industries 

  • Division 5 – Construction 

How much is VAT on water bills? 

Where VAT is chargeable to customers, it is at a standard rate of 20% 

How do I check I am paying the right amount? 

You can check your business SIC code here, and then inform us of your correct SIC code to make sure you are paying the correct amount of VAT on your bills