31. Gas and electricity supplies

Summary

For the purposes of VAT law, the supply of gas, of heat or cooling energy or of electricity is considered a supply of goods – see section 2(3). This section sets out the place of supply for gas, heat and cooling energy and electricity. There are two rules. Where the supply is to a taxable dealer, the place of supply is where the dealer has his or her business. Where the supply is to a customer other than a dealer, the place of supply is where the goods are used (in other words, where the meter is).

Details

(1)(a) A taxable dealer is defined as a person whose main business is the supply of natural gas, heat or cooling energy through networks or electricity for consideration and whose own consumption of those goods is negligible.

(1)(b)(i) The place of supply of gas, heat or cooling energy and electricity supplied to a taxable dealer in the State, in another Member State, or outside the Community is the place where the taxable dealer has established the business concerned or has a fixed establishment for which the goods are supplied, or in the absence of such a place of business or fixed establishment the place where the taxable dealer has a permanent address or usually resides.

(1)(b)(ii) When gas, heat or cooling energy or electricity is supplied to a person who is not a taxable dealer, the place of supply is the place where the customer uses and consumes those goods.

(2) Where all the gas, heat or cooling energy or electricity is not consumed by the customer who is not a taxable dealer, it is deemed to be consumed where the customer has his/her business, address, etc.

Relevant Date: Finance Act 2020