Insulating materials

Hi, I have a supplier who wants to charge standard rate VAT when supplying and installing energy savings materials (specifically solid wall insulation) which seems contrary to VAT Notice 708/6. The insulating material is a Thin Internal wall Insulating product (ISO-THERM) which is quite new to the market but has been described and sold to me for wall insulation (specifically as thin internal wall insulation if I’m honest). Although the product does also have damp control characteristics, and the manufacturer does sell other more damp focused products. They have received limited tax advice which effectively says ‘we do not know and this might not be considered as having primary purpose of insulation as it also helps with damp control. And HMRC will not confirm either way and the product might not be insulation in some way - so better to just charge 20% in case’. That approach seems quite contrary to the idea of VAT Notice 708/6 which appears designed to encourage people to install appropriate insulation (and other ESM) materials. One way it does so is by specifically not defining a tight list of insulation products that qualify - but the test is that if something that is designed and installed for insulation (in, amongst places, walls) it can be considered as being insulation for purposes of 0% rate. The ISO-THERM product is referred to in every marketing document as being a TIWI (thin internal wall insulation) so for me this can only be thought of as being insulation for purposes of VAT Notice 708/6 but I would appreciate input if whether a product describing itself as wall insulation (albeit thin internal wall insulation) and it going to be used in a residential property as insulation is sufficient for it to be considered insulation for VAT Notice 708/6 and so benefit from 0% rate. Sorry for the long question. Very much appreciate any input.

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