Value Added Tax Consolidation Act 2010 Schedule 3 paragraph 13A

District heating

Schedule 3 paragraph 13A provides that the supply of district heating is liable to VAT at the reduced rate.

• The supply of district heating is listed in Schedule 3, which sets out the goods and services liable to the reduced rate of VAT.
• District heating refers to a system where heat is generated centrally and distributed to multiple buildings through a network of insulated pipes.
• This paragraph was inserted by the Finance Act 2012 and brings district heating within the reduced-rate category rather than the standard rate.
• The reduced rate treatment applies to the supply of the heating itself, not to the installation or maintenance of district heating infrastructure.