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Posted Thu, 22 Feb 2024 20:49:43 GMT by Tim-JS
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
Posted Tue, 27 Feb 2024 08:01:19 GMT by HMRC Admin 19

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.
Posted Tue, 27 Feb 2024 10:07:16 GMT by Tim-JS
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 
Posted Wed, 28 Feb 2024 11:24:15 GMT by HMRC Admin 32

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.

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