VAT must be charged at the standard rate of 20% on the supply of water to relevant industrial users. If you are a business customer using water for a Relevant Industrial activity that falls within Divisions 1 to 5 of the 1980 Standard Industrial Classification (SIC) list, VAT will need to be added to your water bill. VAT is not charged on water used by domestic and non-industrial businesses (being a zero-rate supply).

We've put together the below list of frequently asked questions we receive from our customers. If you still can’t find the answer you are looking for. You can contact us using the details at the bottom of this page.

It is the primary responsibility of the customer to correctly determine and declare the nature of their activity.  However, we would like to work with you to ensure the correct VAT treatment is applied to avoid the risk of potential VAT penalties. If you have any questions on VAT or would like to let us know that you think you are currently being treated incorrectly for VAT please use the contact form to let us know.

What is VAT?
VAT is Value Added Tax charged on supplies of goods or services supplied in the UK. The standard rate of VAT is currently 20%, but some supplies have a reduced rate or zero rate or are exempt from the tax.
Do I have to pay VAT on my water bill?
What is Relevant Industrial Activity?
What is a SIC Code?
What do I need to Do?