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.

Bill Line	Amount
Standing Charge	10.00
2,000 units @ 10p	200.00
CCL on 1,600 units @ 0.43p	6.88
CCL relief	<0.68>
VAT @ 17.5% on £174.20	30.48
VAT @ 5% on £42.00	2.10
Total	248.78