Solar install by non VAT registered company

How would I go about getting VAT back on my solar and battery install if the company installing it isn't VAT registered? They have to pay the VAT at the wholesaler which is nearly £2k. Which they want to pass on to me as they can't claim it back via their VAT return as their not VAT registered. Are they pulling a fast one or is there someway to overcome this problem?

You can't get back the VAT as a consumer. The zero rate is triggered by the installation of energy saving materials, buying the materials on their own is standard rated. So if you personally bought the panels you would incur VAT from the wholesalers and not be able to reclaim it, whereas if you get an installer to buy and install the goods, the whole supply is zero rated. That of course doesn't apply where the installer is not VAT registered, if not VAT registered, then they will be in same position as if you bought panels directly, the installer will incur the VAT when buying the materials and not be able to recover this VAT, they'll pass that VAT onto you as part of their overall pricing. The installer does not appear to be pulling a fast one. Non-VAT registered indicates either a new/start up business or an existing business that has not gone over the £85k turnover threshold for VAT registration. It might be worth getting a quote from a VAT registered business to see if they are competitive.

Hi,

If the supplier of the solar panels is not VAT registered then there is no VAT to claim back from them as they cannot charge it. As the supplier is not VAT registered then they have to pass over the cost, including VAT, which they have incurred.

Unfortunately there is no way to overcome this problem.

Thank you.

Thank you all for the replies. The company I got the quote seemed very nice and knowledgeable so I'm glad he wasn't "pulling a fast one" "Unfortunately there is no way to overcome this problem" I disagree, remove VAT from all renewables and related tech, including batteries, ASHP's, inverters etc at the point of wholesale and there wouldn't be a problem to overcome. It then wouldn't matter who purchased/supplied them. HMRC, (read government), either wants people to take up the renewable options or it doesn't. I also wanted an ASHP for air conditioning but regardless who is supplying/installing it doesn't qualify for the boiler upgrade scheme. I thought I'd done all I needed by getting the EPC improved with cavity wall insulation and increasing the level of loft insulation. There's always something, so hoop to jump through, some box to be ticked... and even then I'll save my money and just the old oil boiler serviced. If that's not a cost effective option, I'll get a new gas boiler fitted like nextdoor. Fifteen hundred pounds instead of fifteen thousand and all done in a morning.