Electricity VAT to be scrapped for six months from 1 October

Scot_39

I think I might have to revisit this when/if have time to read the Ofgem documents linked in the 3f notes.

Qyburn

There's no VAT paid on export. I don't see how there could be given the end user is probably not VAT registered.

I'm on a tariff where import, including VAT, matches export. I presume what they'll do is reduce the export to maintain that parity.

debitcardmayhem

https://forums.moneysavingexpert.com/discussion/comment/82080109#Comment_82080109

Didn't think about that until now, so I wonder what Octopus will do with IOF?

Edit: i guess that they will

Ildhund

https://forums.moneysavingexpert.com/discussion/comment/82080084#Comment_82080084

There are several intrusive comment boxes in the original file. I took them out to render the screenshots a bit more legible, but the explanations for their odd results might well be in them. Good luck with deciphering them!

Sea_Shell

https://forums.moneysavingexpert.com/discussion/comment/82079514#Comment_82079514

"The way Fuse account for VAT is particularly strange, and only became clear once they explained it to me in detail.."

Can you tell me what to look out for, and can you explain it simply for me, as I've just switched to them so want to be able to understand the bills when they arrive.

Cheers

TroubledTarts

https://forums.moneysavingexpert.com/discussion/comment/82080515#Comment_82080515

Surely bills should be clear and easy to understand and if they are not the right thing to do is to complain and make the ombudsman aware so that the hope is enough complaints lead to them changing their billing?

Sea_Shell

Thanks for clarifying @[Deleted User]

prowla

More waived than scrapped.

debitcardmayhem

You should see a reduction of 0.047619…% in both the sc and the unit rate previously agreed (before rounding

4.76919% or multiplier of .0476919

Ildhund

@[Deleted User] wrote:

… the Fuse calculation is based upon the the vat attributed to each day's sc and each unit of consumption, with roundings applied at each stage of the calculation before telling you the total vat amount.

I wonder if this is quite right. The bill is essentially an invoice, so the amount of VAT on it is what Fuse are bound to pay to the taxman. There are strict rules about rounding (AIUI, VAT is always rounded to the nearest penny, with 0·5p and over rounded up). This may be different from the summation of daily VAT amounts calculated. You could theoretically have had 31 daily amounts each ending in 0.49p. These would be rounded to zero, but when it comes to the invoice for those 31 days, the discarded fractions of a penny would add up to 15.2p - 15p extra on the total VAT for the month.

So yes, the amount of VAT on the bill should be pretty close to 0.047619 x the total shown (but not, as you wrote, 0.047619 …% of the total 😉).

Pedants of the world unite!