The Earl of Selkirkasked Her Majesty's Government:
Whether Value Added Tax applies to the standing charge in respect of the supply of fuel and power for charity and domestic use.
§ The Parliamentary Under-Secretary of State, Department of Employment (Lord Henley)The standing charge has always been regarded as part of the consideration for a single supply of fuel and power. It is thus now liable to VAT at the transitional rate of 8 per cent. when charged on domestic and non-business charity use.