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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2709
 Service Circular No: LCH EnClear No 309
Date:01 November 2010
To:All LCH.Clearnet EnClear Clearing Members

VAT: proposed reverse charge accounting for businesses trading in emissions allowances

Budget Note 49 (24 March 2010) announced the introduction of legislation for a reverse charge with effect from 1 November 2010

With effect from 1 November 2010 the reverse charge accounting mechanism will apply to:

Members are therefore advised that from Monday 1 November 2010 reverse charge accounting will apply to all invoices produced resulting from  the delivery of an EU Allowance of Certified Emission Reduction under the EnClear service.

ContractContract Code
EUA Forward ContractEUA
CER Forward ContractCER
EUA Sport ContractEUS
CER Spot ContractCES

Invoices from 1 November 2010 will state additionally that:

Members will pay or receive a net amount in relation to contract settlement

Please refer to the HMRC website for further information.


If you have any questions relating to this circular, please do not hesitate to contact me on +44 20 7426 6323 or Jason.labrooy@lchclearnet.com.

Yours sincerely,

Jason LaBrooy

Energy, Freight and Emissions Markets 
Commercial Services