Zero rate of VAT for solar panel products

Hi HarvestTheSun,

As the materials are only being supplied and not installed then the liability will always be 20%

Thank you.

Hi HarvestTheSun,
If the energy saving materials are only being supplied to you by the company then they should be charged at the rate of 20%.
I would refer them to the guidance below:
Energy-saving materials and heating equipment (VAT Notice 708/6) 2. Installations of energy-saving materials
Thank you.

 

Hi , i'm Secretary of Community Amateur Sports club ( Merriott Bowling Club), we are investigating installing solar panels with battery on our club house, the key question for us is whether we have to pay any VAT at all?

Hi,

You can find guidance here:

Energy-saving materials and heating equipment (VAT Notice 708/6)

Thank you.

Many thanks however under section 2.3 there is a paragraph that reads "The relief also applies to the supply of energy-saving materials by the person who installs those materials in residential accommodation and charitable buildings. " this does not make it totally clear as to whether an CASC ( Community Amateur Sports Club) can be be considered as a Charity, as when you apply for CASC status you cannot also be a charity, could you thus advise clearly, as our project may fail to progress without a clear understanding of the possible VAT relief or not.

Hi,

From 1 February 2024, the relief has been extended to include buildings intended for use solely for a relevant charitable purpose.

Use for a relevant charitable purpose means use by a charity in either or both the following ways, namely:

• otherwise than in the course or furtherance of a business
• as a village hall or similarly in providing social or recreational facilities for a local community

The relief will then depend on whether you are a charity and whether the installation is being supplied in the the type of buildings above.

We suggest to speak to our charities team to confirm whether or not you are a charity and whether this guidance is applicable.

Charities and Community Amateur Sports Clubs

Thank you.

Hi. I own a solar panel installation company, residential homes only. Occasionally we will commission a 3rd party structural engineer report to assess the integrity of the client's roof, to see if it can take the weight of solar panels (especially old properties or old flat roofs). When we commission the report and pay for it ourselves, on the client's behalf, are we able to reclaim the VAT charged to us by the 3rd party? As this is a critical part of the solar installation project. Many thanks.

Hi. I own a solar panel company. Please let me know how to handle VAT for this scenario. My scaffolder is VAT registered. He invoices me for erecting the scaffolding specifically for a domestic solar install. I pay him. He includes VAT on the invoice. I pay it. I then, in turn, include scaffolding in my final invoice to the end client. Should I exclude VAT from the client invoice, and then do a VAT return myself to reclaim the VAT? Or should we be doing some kind of reverse VAT charge between my scaffolder and myself? Thanks.

Hi Deirdre,
If  you have incurred VAT on a purchase then you can treat the VAT as input tax if the VAT has been incurred in the course of your business and with the intention of making taxable supplies.
Please see the guidance below:
10. Introduction to input tax.
Thank you.

Hi Deirdre,
If the supply of scaffolding falls under CIS and you as the contractor are registered for CIS then the supply should fall under the reverse charge,meaning no VAT would be charged by the scaffolder and you would account for the VAT as the contractor.
Please see the guidance below:
Scaffolding
If you are separately invoicing for the scaffolding services then this should be invoiced at the 20% rate of VAT.
Thank you.

Hi Apologies if this has already been asked - I am about to supply materials and install a solar array on a domestic property, I am vat registered, so I assume I pay vat for all of my materials purchased at 20% install the solar then claim any vat charged to me back at the end of the vat quarter?

Hi,
Yes that is correct you would pay VAT on the materials you purchase and this would be reclaimed on your VAT return submit to the normal input tax rules in notice 700 sections 10-13:
VAT guide (VAT Notice 700) 
For information regarding installations of energy saving materials please refer to notice 708/6 here:
Energy-saving materials and heating equipment (VAT Notice 708/6)
Thank you.

I have an existing solar array on a domestic property that I'm wanting to expand by adding additional panels. The installation will be carried out by a VAT registered installer who will supply and install the new panels. I have been advised by the installer that this expansion is not zero VAT rated Is expanding an existing system zero VAT rated when the supply of ESM's and installation work is carried out by a VAT registered installer?

Hi,
The guidance regarding the installation of energy saving materials can beseen here:
Energy-saving materials and heating equipment (VAT Notice 708/6)
There does not appear to be guidance which stops the further installation of energy saving materials in a qualifying property, however, if being supplied with other works at the same time the supplier would need to look at section 2.5 of the above guidance.
Please discuss with your supplier which section of the guidance they have referred to in making their decision.
Thank you.

Does the 0% rate vat for solar panel installation extend to the service and maintenance of solar PV inverters and generation meters? We are VAT registered company servicing and maintaining solar PV systems for residential customers.

Hi ,
 

The Zero rated relief for energy saving materials only applies to the installation of these energy saving materials and not to the servicing/repair of these materials. Please see below:  Energy-saving materials and heating equipment (VAT Notice 708/6)  . Thank you .