Vat Rate Solar Panel Installation

Installation repair and maintenance of renewable source heating systems the reduced rate is only for the grant funded part of the work.

Vat rate solar panel installation.

This took effect from 1 october 2019 although the government has stated that the majority of solar. The government has introduced secondary legislation to amend the scope of the 5 rate to comply with european vat rules si 2019 958. Huge vat rise on solar panels makes installation entirely uneconomic say experts. Vat is charged at the reduced rate of 5 on the installation of solar panels in or in the curtilage of residential accommodation.

With effect from 1 october 2019 if this draft legislation is implemented this will be more. If work needs to be done on your roof to allow it to bear the load of the solar panels this would also attract the lower vat rate. Value added tax consolidation act 2010 vatca 2010 ref. Take note of the two underlined parts as both are applicable in order to qualify for the reduced rate of vat.

The installation of certain energy saving materials into any residential accommodation is subject to the reduced vat rate of 5. Consequently solar panels water turbines and wind turbines along with battery storage systems will no longer qualify for the reduced rate of vat. For example a business carries out an installation of solar panels combined with a battery. If you do a diy install you will need to pay the full vat rate when you buy your panels.

It pays 5 000 for the solar panels and battery excluding vat and charges its customer 7 500. In such cases where the cost of the physical solar panels total more than 60 of the total installation value the 5 rate applies only to the labour cost of installing the goods with the remainder charged at the standard vat rate of 20. Labour costs will still benefit from the reduced rate of 5 per cent vat. At present vat is charged at the reduced 5 rate on the installation of energy saving materials esms including solar panels in residential accommodation.

Changes to the vat treatment of solar panels and other energy saving materials are not as extensive as first feared.