VAT is not currently chargeable on sewage services.
VAT will be added to water supply charges to relevant industrial customers who are defind within divisions 1-5 of the standard industrial classification list 1980 (SIC).
Div1 Energy and water supply industries
Div2 Extraction of minerals and ores other than fuels, manufacture of metal, mineral products and chemicals.
Div3 Metal goods, engineering and vehicle industries.
Div4 Other manufacturing industries.
Where supplies are for both relevant industrial activities and other purposes, VAT is chargable 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. Other services provided may be subject to VAT.