The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Businesses involved with advising contractors or subcontractors installing energy saving materials, grant funded heating equipment or security goods will find this guidance note of particular interest as it outlines the main rules regarding the supply of installed qualifying goods at the reduced VAT rate.
In order to determine whether the supply will be liable to VAT at the reduced rate, the following questions need to be answered:
VENSAV3000; VATA 1994, Sch 7A, Group 2, Note 1(a)–(k)
Note thatif these items are installed in a new dwelling, the installed materials will most likely be zero-rated as part of a new construction of a zero-rated dwelling. See the Zero-rating the construction of a new building and Supplies of building materials guidance notes.
Draft legislation has been published thatwill limit the scope of the reduced rate for energy saving materials installed in residential homes in order to make it consistent with EU law. With effect from 1 October 2019 (subject to the legislation being enacted by Parliament) the following changes will be implemented:
Group 2 of Schedule 7A (charge at reduced rate: installation
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