Scaffolding and Installation of Solar Panels VAT

A scaffolding company is providing a supply, erection and dismantling service to a solar panel installer working on residential properties. I understand that solar panel installation is within CIS and that supply/fit is currently zero rated. HMRC reverse charge technical guidance says 'The reverse charge does not apply if the scaffolding is supplied for a zero-rated construction project' under 'Scaffolding on zero-rated new build housing' so VAT would be due at 20% on the hire element with labour being zero rated. Under 'Scaffolding for standard or reduced rated construction projects' HMRC say that this should be acounted for under the reverse charge. Is the scaffolder's supply zero rated so VAT is due on the hire element or does it fall within reverse charge?

The supply of erecting and dismantling scaffolding can be zero-rated (as the supply is in connection with a zero-rated construction project).  As the supply is zero-rated the reverse charge doesn't apply. Charges for the hire of scaffolding are not covered by the zero rate and should be accounted for under normal VAT rules. Here: https://www.gov.uk/guidance/vat-reverse-charge-technical-guide#scaffolding Scaffolding (erecting and dismantling and hire) supplied to a standard rate construction project will be liable to VAT at the standard rate and the whole charge should be accounted for under the reverse charge. In this case the conditions for the reverse charge must be met i.e. VAT and CIS registration etc. of the scaffolder's customer. Here: https://www.gov.uk/guidance/how-to-use-the-vat-reverse-charge-if-you-supply-building-and-construction-services

Hi K M,
The scaffolders supply would only be zero rated rated if the work was in relation to a new build property.
If the work is not in relation to a new build property then the work would normally come under the reverse charge procedure.
The guidance states:
Scaffolding supplied in relation to standard or reduced rated construction work (contracts for the hire, erection and dismantling of scaffolding for construction work) will be liable to VAT at the standard rate.
This should be accounted for under the reverse charge if all the other reverse charge conditions are met — unless the customer is an end user.
If the scaffold supplier’s invoice shows a single charge for the hire of scaffold and labour, the full value of the supply is subject to the reverse charge, unless the customer is an end user.
Scaffolding
Thank you.