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.
Bill Line
Amount
Standing Charge
10.00
2,000 units @ 10p
200.00
CCL on 1,600 units @ 0.43p
6.88
VAT @ 17.5% on £174.88
30.60
VAT @ 5% on £42.00
2.10
Total
249.58