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NeilC1
Nov 21, 2019 10:46 AM UTC
Solved

VAT rate for electricity is 20%(UK). But when I enter into QB it only gives me the option of 5%R or 20%S. Should it not be 20%R?

When I try to make a rule, it only gives me the option of 5%, but if I edit it on the banking page 'for review' it allows me to enter 20% purchases, which is correct?
paul72
paul72Answer
Nov 23, 2019 12:32 PM UTC

Hi NeilC1.

 

VAT on electricity (& energy in general) actually depends on consumption.  You should check your invoice to see which rate you've been charged.

 

Standard rate is 20% = 20.0%S in QB.

Reduced rate is 5% = 5.0%R in QB.

 

Fuel and power (VAT Notice 701/19)

https://www.gov.uk/guidance/vat-on-fuel-and-power-notice-70119

 

5.2 Supplies of small (de minimis) quantities
Supplies of not more than an average rate of 33 kilowatt hours per day, 1,000 kilowatt hours per month, of electricity to one customer at any one of the customer’s premises are subject to VAT at the reduced rate. This applies whether the bill is based on a meter reading by either you or your customer or on an estimate.

If your usage is below 1000kWh per month you will be charged at the reduced rate.

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6 replies

payment after leaving
Nov 21, 2019 11:17 AM UTC


Hi NeilC1

 

The standard 20% rate for the UK is named 20.0%S within QuickBooks. We presume that when you refer to making a rule you are doing sol from the banking page > riles? If you are you should be able to select 20.0%S.

NeilC1Author
Nov 21, 2019 12:08 PM UTC

Thank you

 

I was a bit confused over the options offered on one page and then a different option on another page.

 

Cheers

Neil

paul72
paul72Answer
Nov 23, 2019 12:32 PM UTC

Hi NeilC1.

 

VAT on electricity (& energy in general) actually depends on consumption.  You should check your invoice to see which rate you've been charged.

 

Standard rate is 20% = 20.0%S in QB.

Reduced rate is 5% = 5.0%R in QB.

 

Fuel and power (VAT Notice 701/19)

https://www.gov.uk/guidance/vat-on-fuel-and-power-notice-70119

 

5.2 Supplies of small (de minimis) quantities
Supplies of not more than an average rate of 33 kilowatt hours per day, 1,000 kilowatt hours per month, of electricity to one customer at any one of the customer’s premises are subject to VAT at the reduced rate. This applies whether the bill is based on a meter reading by either you or your customer or on an estimate.

If your usage is below 1000kWh per month you will be charged at the reduced rate.

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