VAT treatment for a battery storage installation

Hi, please could you advise the correct VAT treatment for an installation project that will include a used battery storage system and a new ev charger which will take advantage of the stored electricity during the day when electric is (typically) less clean if taken directly from the grid. For the avoidance of doubt: - the battery storage system is not new, but it will be its first installation at the property - the ev charger will share many of the components that are needed for the battery storage system From what i can see: - The VAT installation of energy saving materials order 2022 doesn't appear to differentiate between new and not new "The relief applies to the services of installing energy-saving materials in residential accommodation and charitable buildings. For example, where a customer employs a business to install energy-saving materials that the customer purchased directly from a retailer." - The VAT treatment for the ev charging installation appears to depend upon whether the project can be considered as a single supply "A single supply is where one element of the supply is the principal element to which all other elements are ancillary. An ancillary element does not constitute, for the customer, an aim in itself, but is a better means of enjoying the principal supply." . For this project I think it's clear that the battery storage system is the principle element, and the ev charger is a better means of enjoying this principle supply. Thanks

Hi,

Please refer to section 2.19 of the following guidance for full information on when these supplies can be subject to VAT relief:

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

Thank you.

Sorry, but I've already looked through the guidance notes, and as the answers to my questions are not explicitly provided in the guidance, I thought it would be best practice to ask for an explicit answer rather than make my own interpretation. My reading is that section 2.19 is certainly pertinent to my first question, but doesn't explicitly answer it, and my reading is that section 2.5 is pertinent to my second question, but again doesn't explicitly answer it. My first question is whether it is ok for the installation of a "used" (rather than new) battery system to be carried out as zero rated, or does the fact that it is "used" prohibit this. My reading of the guidance is that there is nothing that prohibits the battery system from being "used", and that it simply needs to be a battery system, and it needs to be installed, for it to be zero rated, but please could you confirm whether my reading is correct. My second question is whether if there is also an EV charger installed at the same time as the battery system, so that the battery system can be better enjoyed, will this also be zero rated ? My reading of the guidance is that this will also be zero rated, as this situation should be considered a single supply, but please could you confirm whether my reading is correct. Thanks again, 

Name removed admin 

Hi,

The installation of a battery system can benefit from the zero rated relief whethert the battery itself is old or new as per the guidance you have quoted.

If the EV charger is installed at the same time as the qualifying ESM, it would constitute a single supply of services.and would therefore qualify for the zero rate relief.

Thank you.

Hi, apologies for the long gap since you answered, but I'm eventually close to having an install. One thing the installer has questioned is whether there will be an issue with eligibility for relief, because it's a peculiar scenario: - the accommodation is residential, but is also listed on companies house as the registered office address, and is where I do most of my work for the business from - you've confirmed above that there's a "single supply of services", and therefore eligibility for zero rate relief , but... - there's a voucher scheme (OZEV) for installation of EV charge points at workplaces, and one of the eligibility criteria is that the voucher can be used for installation at residential accommodation as long as it's listed at companies house and is also a primary place of work I cant see anything in the VAT Notice 708/6 eligibility criteria saying that use of an OZEV voucher would disqualify the eligibility you confirmed above, so I think we're fine in our peculiar scenario, but please could you confirm that you agree. FYI I will also be double checking with OZEV about the voucher element of this project. Thanks again

Hi Tim-JS,
It is down to the supplier to charge the correct rate of VAT as long as he is satisfied that you meet the conditions.  
With regard the payment being made partly by voucher the supplier should refer to this guidance VAT guide (VAT Notice 700).
Thank you.

Hi, thanks for the speedy response, and I/we understand it’s up to the supplier to charge the correct rate of VAT, but as I’d already provided the context and asked other questions (as per above), I volunteered to ask a supplementary question rather than them opening another thread. My/our question is not about VAT Notice 700, but is specifically about that covered by VAT Notice 708/6. For me, this notice makes it very clear (in section 2.3) that “The relief applies to the services of installing energy-saving materials in residential accommodation and charitable buildings. ”, with the pertinent bit being "residential accommodation". The supplier’s concern is whether use of the OZEV voucher somehow changes the classification of our accommodation from “residential” to “business”, and so outside of the zero rate eligibility. FYI I’ve now had feedback from the OZEV team and they’ve confirmed: “After investigation, I can see the companies house number registered business name and address matches your application and installation address. For this reason, you are eligible to install the chargepoint unit at this address even though it is residential as you have supplied the correct evidence.” So they’re clearly happy that the address remains “residential” accommodation, but please could you confirm that HMRC will too. (Seems really obvious to me that it is, but I said I’d seek confirmation so that there’s no doubt at all for the supplier.) Thanks again

Hi, Apologies for the chaser, but wondered if my Q got lost ? Please could you confirm that HMRC are also happy that the ozev voucher doesnt change the classification of our accommodation away from residential. Thanks