Example 3 - Account with VAT Declaration

This example is for a non-domestic account with a VAT declaration of 20%. 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. 80% of the energy related charges (the standing charge and the per unit charge) and all of the CCL charge are subject to standard rate VAT. 20% of the energy related charges are subject to reduced rate VAT.