Subcontractor installing solar panels

Would a subcontractor who is VAT registered and working for a contractor who is installing solar panels charge zero VAT or use the reverse charge option? Is there a difference answer if working on a domestic house or a commercial building?

Hi,

If the subcontractor is installing solar panels on a residential building and meet the conditions in the following guidance then the supply would be zero rated:

Installations of energy-saving materials

However the zero rated relief only applies to residential buildings and so if the subcontractor is installing solar panels on a commercial building and invoicing the contractor then the reverse charge would apply to this supply if the relevant criteria is met.

You can see guidance here:

VAT domestic reverse charge technical guide

Check when you must use the VAT domestic reverse charge for building and construction services

Thank you.