Top 5 questions GP surgeries ask before reclaiming VAT

Running a practice is full on. When you spot 20% VAT on your energy bill, it can feel like money you shouldn’t be losing.

The good news: in some cases, GP surgeries can be charged 5% VAT on energy instead, and no Climate Change Levy (CCL). Here are the questions surgeries ask most, with plain answers.

1) Can we actually get anything back?

Short answer: yes, if you were charged the wrong VAT rate. Some GP services are VAT-exempt, so you don’t usually reclaim energy VAT from HMRC like a fully taxable business. Instead, you ask your energy supplier to correct the rate to 5% where you qualify and remove CCL. If they agree you were overcharged, they’ll refund or credit the difference on past bills. Common ways surgeries qualify include low usage (small sites) or mixed use. 

2) How far back can we fix past bills?

Suppliers typically review up to four years of bills once they have your declaration. If you changed supplier during that time, you’ll need to contact each one. It sounds like admin, but it’s manageable: one pack per supplier, then they do the maths and issue credits or refunds.

3) Is it complicated? What will they ask us for?

It’s simpler than most teams expect. You’re proving why your site should be on 5% and CCL-exempt, not arguing rates.

You’ll usually need:

• A short VAT declaration (the supplier’s form)
• Recent energy bills and, if possible, meter reads
• A note on how the site is used
• Contact details for any previous suppliers in the claim period

Once the supplier accepts your status, they’ll set the right VAT going forward and review the back period. If you’re unsure about the wording, start with a plain summary: “We believe our surgery qualifies for the 5% VAT rate and CCL exemption because…”.

4) How long does it take?

Timelines vary by supplier and how tidy the paperwork is. As a guide, allow a few weeks from submitting the forms to seeing changes on your bill. Backdated amounts can arrive as a credit on the next invoice or as a refund. If you’re claiming across multiple old accounts, expect each supplier to move at their own pace. A quick follow up after two to three weeks helps keep things moving.

5) Will this affect our supplier relationship or prices? Is there a cost to begin?

Asking for the correct VAT treatment doesn’t change your unit rates or damage the relationship. You’re asking them to apply the rules properly, nothing more.

There’s no fee to send a declaration to your supplier yourself. If you ask a third party for help, some may charge or work on a share of any refund. Both models can be fine; the key is to ask about fees upfront so there are no surprises. If your claim looks straightforward, you may feel comfortable doing it in-house with a template letter and a few bills.

If you’d like a quick sense check of your current and past bills and help identifying if your are eligible for reclaiming VAT and CCL removal, Troo can help.

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