Not all business customers are charged VAT on water charges. HM Revenue & Customs (HMRC) decide the type of organisations that are charged standard rate VAT (20 per cent) based on the 1980 Standard Industrial Classification code (SIC). This usually applies to organisations involved in manufacturing, engineering and construction processes.
VAT applies to wastewater charges for our business customers but is currently zero-rated.
This information is based on legislation in place at February 2012.
We need to make sure that VAT is correctly applied to your water service charges, in line with Government legislation. Please complete a SIC code form
(PDF) and return it to us on the address stated on the form or fax the completed form to us on 01925 465 088.