The reduced VAT rate applies to supplies for a ‘qualifying use’ of all forms of heating whether electricity, gas, solid fuel, oil or similar items together with electricity, including that used for heating, air conditioning and refrigeration (VATA 1994, Sch. 7A, Grp. 1).

‘Qualifying use’ means either domestic use or use by a charity otherwise than in the course or furtherance of a business.

‘Domestic use’: de minimis limits

The following supplies are always for domestic use (VATA 1994, Sch. 7A, Grp. 1, Note 5):

(1)a supply of not more than one tonne of coal or coke held out for sale as domestic fuel (Notice 701/19/2012, para. 7.1.1);

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