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Vat On Gas Bottles


Durbanite
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At home people pay 5% VAT for gas and electric. Gas is used for cooking and heating. Should we pay 5% or 20% VAT for the gas refill as that is used for cooking which is essential and not a leisure pursuit. The same applies to heating in the cooler months.

If living in a static caravan, would you pay 5% or 20% VAT if ti is a 45kg bottle refill? Some static sites have piped gas so what do they pay in terms of VAT?

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I think that I'm correct . ... in saying . ... that all bottled gas is at 5% VAT . ....

 

Hope that helps you out . ....??

 

Cheers

 

Pete

Mine : Land Rover Defender 90, big, black and shiney.
Polly's : Land Rover Discovery Sport, HSE in Scotia Grey . .......
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Have a look at HMRC reference notice 701/19 which suggests that the gas should be 5% but the cylinder is 20% So if you buy a cylinder or rent a cylinder the cost is 20% but the conents are only charged at 5%.

 

In theory if you go and get a new cylinder you should have two vat rates on the receipt. 20% for the cylinder purchase/rental charge and 5% for the gas, any refills should only be charged at 5%

 

I'd cut & paste it if I could, but it doesn't work - see para 4, 4. 5, 4. 6 & 4. 7

Edited by matelodave

2018 S-Max Titanium 2. 0 Tdci (177. 54bhp,180ps,132kw) Powershift + 2015 Unicorn III Cadz, Ventura Marlin porch awning

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Have a look at HMRC reference notice 701/19 which suggests that the gas should be 5% but the cylinder is 20%

Beet me to it the way I read it is when you first rent a cylinder vat is 20% for rental then any gas refills are charged at 5%

 

http://customs. hmrc. gov. uk/channelsPortalWebApp/channelsPortalWebApp. portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000510&propertyType=document#toc

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Have a look at HMRC reference notice 701/19 which suggests that the gas should be 5% but the cylinder is 20%

 

I'd cut & paste it if I could, but it doesn't work

The cylinder is a refill so no VAT should be charged as it would be second hand at that point and you are only being charged for the gas. In addition, the cylinder is "rented" from Calor gas for the duration. I cannot remember if we were charged 5% or 20% on our last refill.

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if you were buying a Calor bottle from scratch, you pay 20% VAT on the initial hire charge, and 5% VAT on the refill

Thanks. As said I had no idea whether we paid 5% or 20% as I have never asked for a VAT receipt. I am now beginning to suspect that this could be the reason for differing prices on refilling the same size bottles. Maybe some stores are charging 20% instead of 5%?

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Thanks. As said I had no idea whether we paid 5% or 20% as I have never asked for a VAT receipt. I am now beginning to suspect that this could be the reason for differing prices on refilling the same size bottles. Maybe some stores are charging 20% instead of 5%?

possibly, I just confirmed with our shop that the system we use would show 5% VAT on the till reciept

 

 

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Hello all,

 

Just to confirm from our end, an end user of cylinder gas will always be charged 5% VAT for the gas.

The first time a customer acquires Calor’s cylinder gas, they enter into a cylinder refill agreement which is a one-off charge that means that when an empty cylinder is returned, they are immediately entitled to a replacement cylinder filled with LPG, and they only have to pay for the gas (at 5%) at each subsequent cylinder exchange.

Due to a HMRC ruling, if the gas is purchased directly by Calor, the refill agreement carries 5% VAT, but when the gas is supplied by a Calor dealer, then the refill agreement carries 20% VAT. However, the price a customer pays for this refill agreement will always be the same (currently £34. 25 including VAT) regardless of where the gas is purchased.

 

Hope that helps, many thanks

 

Nicola - Calor

Edited by Calor
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Hello all,

 

Just to confirm from our end, an end user of cylinder gas will always be charged 5% VAT for the gas.

The first time a customer acquires Calor’s cylinder gas, they enter into a cylinder refill agreement which is a one-off charge that means that when an empty cylinder is returned, they are immediately entitled to a replacement cylinder filled with LPG, and they only have to pay for the gas (at 5%) at each subsequent cylinder exchange.

Due to a HMRC ruling, if the gas is purchased directly by Calor, the refill agreement carries 5% VAT, but when the gas is supplied by a Calor dealer, then the refill agreement carries 20% VAT. However, the price a customer pays for this refill agreement will always be the same (currently £34. 25 including VAT) regardless of where the gas is purchased.

 

Hope that helps, many thanks

 

Nicola - Calor

Are you saying that the cost of a refilling a 6kg cylinder is now £34. 25 including VAT at 20%?

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Are you saying that the cost of a refilling a 6kg cylinder is now £34. 25 including VAT at 20%?

Hi DeltaTlowner,

 

No that's not correct. The £34. 25 is just for a refill agreement which you only need if you don't already have a bottle to exchange.

 

 

Many thanks

 

Nicola

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Interesting.

 

Anyone know what rate their LPG for re-fillable systems (Such as Safefill) are charged at.

 

I bet it's 20%, even though the HMRC site suggests that it should be 5% for caravans.

 

Regards,

Stephen

Olympus II 620-6 & Mitsubishi Shogun

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Due to a HMRC ruling, if the gas is purchased directly by Calor, the refill agreement carries 5% VAT, but when the gas is supplied by a Calor dealer, then the refill agreement carries 20% VAT. However, the price a customer pays for this refill agreement will always be the same (currently £34. 25 including VAT) regardless of where the gas is purchased.

 

Hope that helps, many thanks

 

Nicola - Calor

 

Seems I misunderstood as the above seemed to indicate that the refill was £34. 25. Apologies for being a bit thick, but just to be clear if going for the new style bottle it is £34. 25 for a new 6kg propane bottle including the gas and not just a refill effectively making the deposit on the bottle about £10? Thanks.

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Seems I misunderstood as the above seemed to indicate that the refill was £34. 25. Apologies for being a bit thick, but just to be clear if going for the new style bottle it is £34. 25 for a new 6kg propane bottle including the gas and not just a refill effectively making the deposit on the bottle about £10? Thanks.

 

 

Hi Delta,

 

When you buy a gas bottle without one to exchange, if it's your first ever cylinder for example, you will be charged a £34. 25 cylinder refill agreement as well as the price of the gas. For example a first time purchase of a 6kg Propane would cost around £55, with this cost being made up of the cost of the gas and the cost of the £34. 25 cylinder agreement.

 

When you are exchanging gas bottles within the same group and have an empty you'd like to swap i. e. a 6kg Propane for another 6kg Propane or a Calor Lite, you will not have to pay a cylinder refill agreement charge again, just the cost of the gas, and using the 6kg Propane example again, would cost at around £20

 

You would only be subject to another cylinder refill agreement charge if you want to exchange your empty 6kg Propane, for a gas bottle in another group. A 6kg Propane is in group B, so if you wanted to exchange it for a bottle in group A you would be charged for the gas and another cylinder refill agreement.

 

On a like for like swap within the same group, you will only ever be charged for the gas and will not have to pay our agreement charge.

 

I hope this helps,

 

Jodie

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And yet my local supplier only charges for the re-fill and I can have whatever size bottle I want without paying for another agreement. ...Peter

Peter and Sandy pulling a 2016 Coachman VIP 565 with

2016 Ford Kuga 2. 0. 180 ps. Titanium Nav.

Retired and loving it.

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