Example 4 - Account with VAT Declaration and CCL Declaration

This example is for a non-domestic account with a VAT declaration of 20% and a CCL declaration of 10%. Consumption is above the de minimis limit. CCL applies to only 80% of the total units as 20% is subject to reduced rate VAT and therefore exempt. The customer gets a credit (CCL relief) for 10% of the CCL charges as a result of the CCL declaration. 80% of the energy related charges (the standing charge and the per unit charge) and all of the CCL charge less the CCL reliefs are subject to standard rate VAT. 20% of the energy related charges are subject to reduced rate VAT.