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Posted Tue, 29 Mar 2022 16:01:13 GMT by plus91wilosn
Following the announcement last week with regards to 0% VAT does this include solar batteries installation on its own(IE already have the panels but looking to add battery storage now)
Posted Thu, 31 Mar 2022 07:30:32 GMT by HMRC Admin 20
Hi plus91wilosn,

The installation of batteries on their own were not covered under the 5% rate, they were only charged at the reduced rate if supplied together with a solar panel as a single supply.
So the new 0% rate will not apply to solar batteries installation on their own.

Thank you.
Posted Thu, 31 Mar 2022 14:12:12 GMT by jamesB43F
But to be clear 0% vat will apply if solar pv and a solar battery are installed together?
Posted Fri, 01 Apr 2022 10:19:16 GMT by HMRC Admin 20
Hi jamesB43F, 

Yes. If they are supplied together as a single supply then both would be 0%

Thank you.

 
Posted Fri, 01 Apr 2022 10:31:23 GMT by plus91wilosn
Before it was the following: the reduced rate of 5% is only applicable to a solar and storage system where the cost of the equipment does not exceed 60% of the total cost of the installation. does this still apply or does it not matter if the cost of equipment exceeds 60% of the Toal cost thanks
Posted Mon, 04 Apr 2022 13:17:19 GMT by HMRC Admin 24
Hi,

The 60% test has now been removed, The government announced on 23 March 2022 as part of the Spring Statement.

That for a period of 5 years, installations of qualifying energy-saving materials (ESMs) in residential accommodation in Great Britain will be zero rated.

In addition, it will include the permanent reversal of legislative changes made in 2019 by:

•Removing the “social policy conditions”
•Removing the “60% test” and
•Re-adding wind and water turbines to the list of qualifying ESMs

Thank you.
Posted Tue, 05 Apr 2022 07:41:37 GMT by Seventy SevenA
Could you provide a URL - a link - for us to see concrete proof - to show PV battery suppliers that they need to remove VAT on their sale please.
Posted Tue, 05 Apr 2022 07:54:05 GMT by plus91wilosn
Not sure if this helps https://www.gov.uk/government/publications/changes-to-the-vat-treatment-of-the-installation-of-energy-saving-materials-in-in-great-britain/the-value-added-tax-installation-of-energy-saving-materials-order-2022
Posted Tue, 05 Apr 2022 08:47:03 GMT by HMRC Admin 17
 
Hello

There is no such link that we can send to state these items are zero rated from the supplier.


Thank you.

 
Posted Tue, 05 Apr 2022 09:00:44 GMT by Seventy SevenA
So, in summary, - little change Batteries are only zero rated (previously 5%) if bought WITH solar panel(s) AND installed by same supplier.
Posted Mon, 11 Apr 2022 10:19:33 GMT by Johnp
This has the answer. Energy-saving materials and heating equipment (VAT Notice 708/6) Clause 2.7.2 states, “ The installation of certain specified energy-saving materials with ancillary supplies is zero-rated in Great Britain……..An ancillary supply is a supply of goods or services that is a better means of enjoying the principal supply.” It therefore follows that solar batteries when installed along with panels will be zero rated. Can you confirm this for me?
Posted Mon, 11 Apr 2022 10:48:27 GMT by HMRC Admin 17
 
Hi.   

Yes.If the batteries are installed as a single supply with the solar panels then both the solar panels
and the batteries would benfit from the relief .

Thank you.
Posted Mon, 11 Apr 2022 11:13:42 GMT by Seventy SevenA
REF: VAT Notice 708/6 Clause 2.7.2 states, “ The installation of certain specified energy-saving materials with ancillary supplies is zero-rated in Great Britain……..An ancillary supply is a supply of goods or services that is a better means of enjoying the principal supply.” So solar panels are energy saving yet batteries are NOT energy saving? On the contrary - I'd consider batteries able to make as big a saving as the panels. What logic restricts batteries from being zero rated please? At the very least - it enables the electricity network to reduce its fluctuations in supply.
Posted Mon, 11 Apr 2022 13:51:25 GMT by HMRC Admin 17
 
Hi. 

You are correct in saying that for VAT purposes batteries are not considered to be energy saving materials when supplied on their own.

However if they are supplied as a single supply with the solar panels then it is a total supply/package of energy saving materials .

Thank you.


 
Posted Wed, 13 Apr 2022 08:22:25 GMT by Pnorton1
Hi HMRC, If a purchase is made for both battery and solar panel however the battery is installed first and then the solar panels are installed at a later date due to materials being hard to access due to demand (installed by the same installer), are the batteries subejct to zero rated VAT. Is this impacted if the payment is after each phase on installation? e.g. customer pays after first phase (battery installation) and then for the solar after that phase of the installation?
Posted Wed, 13 Apr 2022 12:08:07 GMT by HMRC Admin 20
Hi Pnorton1,

As to whether the relief is appropriate for the batteries will depend on whether the supplier classes this as a single supply.
The payments should have no effect but the important aspect is the supply itself and whether it is a single supply or a mutiple supply of separate parts.
Please speak to the supplier about this.
Posted Fri, 22 Apr 2022 09:14:02 GMT by Richard D
Does "single supply" mean PV and battery hardware installed and commissioned as part of a single installation? Or does it refer to specific hardware, meaning a hybrid PV/battery inverter? Rather than a system that includes a PV inverter and separate AC battery inverter? I found this article which references "single supply" but I would be grateful of clarification with respect of PV and battery insallation. https://www.gov.uk/hmrc-internal-manuals/vat-supply-and-consideration/vatsc11112
Posted Fri, 22 Apr 2022 09:47:09 GMT by Patrick McAteer
Could you please tell me if there is VAT relief on solar batteries being retrospectively fitted to an existing solar panel array?
Posted Mon, 25 Apr 2022 10:28:08 GMT by HMRC Admin 17
Richard D 
 
Hi.

A single supply means that the solar panels and the batteries are supplied at the same time.

It doesn'r refer to to specific hardware.

Thank you.
Posted Mon, 25 Apr 2022 10:35:52 GMT by HMRC Admin 17
 
Patrick McAteer
 
Hi.

There would only be relief on the supply of solar batteries if they are supplied at the same time as the solar panels.

If they are supplied on their own then the relief wouldn't apply .

Thank you.

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