VAT is chargeable at the standard rate on clean water charges for all customers whose main business activity falls within divisions 1 to 5 of the 1980 Standard Industrial Classifications (SIC) as used by Companies House. VAT is not currently chargeable on sewage services. (see also VAT and SIC Code Guidance for more details)
Division 1: Energy and water supply industries.
Division 2: Extraction of minerals and ores other than fuels; manufacture of metal, mineral products and chemicals.
Division 3: Metal goods, engineering and vehicle industries.
Division 4: Other manufacturing industries.
Division 5: Construction.
Where supplies are for both relevant industrial activities and other purposes, VAT is chargeable if the predominant activity of the customer falls within any of the above divisions.
Water supply charges to all other customers are zero rated for VAT purposes.