Clarification of the VAT Treatment on the Energy Bill

The HMRC published additional guidance on the VAT treatment of the measures applicable to domestic and non-domestic customers of energy suppliers concerning the schemes applicable from 1 October 2022 to 31 March 2023. The payments to be received in the context of the Energy Bill relief scheme and energy price guarantee are to be considered as grants outside the scope of VAT, whereas, for those in the context of the Energy Bill Support Scheme, VAT is to be accounted on them.