HC Deb 22 March 1994 vol 240 c127W
Mr. Hanson

To ask the Chancellor of the Exchequer what advice his Department has given to utility companies with regard to advance payments of VAT prior to the introduction of VAT on fuel from April.

Sir John Cope

In meetings with British Gas and the electricity suppliers, customs has confirmed that such advance payments create a tax point under VAT law. Consequently, payments made before 1 April are subject to VAT at the zero rate.