½Û×ÓÊÓƵ

Background

From 1 July 2014, the domestic reverse charge must be used in order to account for VAT due on wholesale supplies of electricity and gas within the UK in order to combat increasing fraud.

Supplies included

The domestic reverse charge applies to all wholesale supplies of gas and electricity made between two UK parties unless the supply falls into one of the exemptions outlined below. This usually means a wholesale supply between two UK parties under trading contracts such as the European Federation of Energy Traders contracts, Grid Trade Master Agreements and National Balancing Point contracts and over-the-counter or spot contracts where:

1. •

   supplies of gas through a natural gas system situated within the UK or any network connected to a natural