Electricity VAT to be scrapped for six months from 1 October

prowla

https://forums.moneysavingexpert.com/discussion/comment/82080802#Comment_82080802

…and to that point, VAT is an acronym and should be written uppercase! :-)

Ildhund

Well, if you pronounce it to rhyme with CAT, then yes, it's an acronym, like NATO. Most people I know pronounce it 'veeaytee', which makes it an initialism, like BBC.

Pedantry rules OK 🙂

debitcardmayhem

Qu'est-ce ca NATO bien sur c'est OTAN🤷🏻

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82081825#Comment_82081825

Well, VAT actually stands for Value Added Tax so should be capitalised also.

Returning a possibly more important element of the topic - my energy account is currently in credit so does that mean when the VAT rate reduces to zero, the 5% VAT have already been lost on the balance at that date? From reading the thread as a whole, that seems to be the suggestion. My assumption was that VAT only applied as at the billing date.

QrizB

Returning a possibly more important element of the topic - my energy account is currently in credit so does that mean when the VAT rate reduces to zero, the 5% VAT have already been lost on the balance at that date?

Which supplier are you with? How they handle VAT varies.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82081986#Comment_82081986

EDF .

prowla

https://forums.moneysavingexpert.com/discussion/comment/82081994#Comment_82081994

Shouldn't that be Edf?

(Only kidding!) :-)

WiserMiser

https://forums.moneysavingexpert.com/discussion/comment/82082053#Comment_82082053

ÉdF as it's Électricité de France?

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/82081981#Comment_82081981

VAT should apply at the point of sale. So I guess it depends on whether your credit is viewed as payment on account, ie a cash balance. Or whether they claim they're selling you electricity paid in advance.

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82081994#Comment_82081994

From my time with EDF, I think they record your account credit as a gross figure, ie. treat it as a cash balance which they then deduct your bills from including VAT as they fall due.

So they won't have pre-deducted VAT.