Electricity VAT to be scrapped for six months from 1 October

Ildhund

It might have been me that chucked this VAT spanner into the works. I can't see how removing VAT affects the account balance. To @[Deleted User]'s question about (I think) how VAT applies to account credits, here are summaries including WHD from consecutive years with OVO. It might take a tax accountant to explain why they're different:

MWT

https://forums.moneysavingexpert.com/discussion/comment/82082577#Comment_82082577

Here you go…

https://forums.moneysavingexpert.com/discussion/6608803/vat-on-direct-debit

BG used to do the same but I think they may have changed.

Either way it is going to be for the energy suppliers to satisfy the powers that be that they are treating VAT correctly as arguably they should account for the VAT at the point a payment is made as that is part of the basic VAT rules as the payment creates a tax point even if the invoice is raised later.]

Most of the time it is irrelevant from the customer perspective, except when there is a change in VAT rate…