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VAT & CCL

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Most businesses pay 20% VAT. Low users and certain categories get 5% and CCL exemption.

Standard Thresholds

FuelDaily thresholdMonthly thresholdIf below
Electricity<33 kWh/day<1,000 kWh/month5% VAT + CCL exempt
Gas<145 kWh/day<4,397 kWh/month5% VAT + CCL exempt

Over threshold: 20% VAT + full CCL applies.

Exemption Categories

A business qualifies for 5% VAT and CCL exemption regardless of usage if it is:

  • A charitable organisation
  • A home, hospice, rehabilitation residence, or place of care for children, addicts, students or the elderly
  • A nunnery, monastery or other religious building
  • Self-catering holiday accommodation, caravan or primary residence for over 90% of occupants
  • A premises where at least 60% of energy supplies meet one of the above criteria
Customer must complete the VAT Reduction & CCL Exemption form. Once received, check progress in the linked Google Sheet before making any Kraken changes.

Adding an Exemption in Kraken

1
Attach the completed form as a note on the Kraken account.
2
Go to the Properties tab. Scroll to Business tax exemptions. Click +.
3
Fill in: Qualifying Usage (% from form), Effective from (SSD), Effective to (leave blank), Tax type (VAT or CCL).
4
Repeat step 3 for the other tax type. Dual fuel accounts need this done on both gas and electricity.
If VAT/CCL was incorrectly charged already: un-bill the affected invoices first, add the exemption, then rebill.
Internal use only. Do not name Kraken or internal tools to customers. Updated 16 Sep 2026