Gas, electricity, gas and electricity certificates

Reverse charge on gas, electricity, gas and electricity certificates

The reverse charge mechanism for accounting for Value-Added Tax (VAT) applies to:

• wholesale supplies of gas or electricity
• supplies of gas or electricity certificates.

Under the reverse charge mechanism, the recipient, rather than the supplier, is accountable for the VAT on the supply.

The new rules came into effect from 1 January 2016. This means that supplies which took place on or after this date are impacted by this change.

Further guidance contains more detailed information on the VAT treatment of gas, electricity, gas and electricity certificates.