VAT rating on associtaed items to an ASHP by 2 different subcontractors but under one contactor

Hello I am the main contractor for a residential refurbishment, the customer has decided they do not want to proceed with the heating engineer that was originally appointed and is our sub-contractor. He has already installed He has already installed new pipework and radiators in preparation for the Air Source Heat Pump. The customer is now getting a different company to install the ASHP. So my question is, now that the associated equipment and labour for the ASHP has been done by our engineer, is this still zero rated VAT as the ASHP will be installed by a separate company? Thank you

Hello Can anyone advise, if a heat pump is being installed by one engineer and another does the underfloor heating and associated works all under one main contractor will this still qualify for zero rated VAT??

Hi,
 

Please see section 2.5 of the following guidance: www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086#installations-of-energy-saving-materials Different subcontractors can do different elements of the work if they are working to a main contractor but the conditions in the guidance above will need to be metv . Thank you .

Thank you that's very helpful

Hi 
If the subcontractor was engaged to provide and install new pipework, and radiators in preparation for the installation of the Air Source Heat Pump under a single contract ,( with a single price quoted), and this contract was between themselves and the customer ( end use owner of property).
If, this was the case then the installation of the pipework, and radiators and the Air Source Heat Pump would all be seen to be a single supply of the installation of Air Source Heat Pump. and subject to VAT at a single rate, the zero-rate.
Just to remind you the indicators of a single supply include:-
•    A single price
•    The supply is advertised as a package.
•    The components are not available separately.
•    The installation of all the components is carried out at the same time, such that, the customer perceives that what they are getting is a single supply.
Therefore, the initial work completed by the subcontractor to install pipework and radiators without the installation of the Air Source Heat Pump would show that the contractor is able to provide these component parts separately, and that these component parts when provided to the end user the owner of the property separately do not meet the criteria of energy saving materials listed in paragraph 2.7 of Notice 708/6 – Energy Saving materials and heating equipment’.
Therefore, the supply of the installation of pipework and radiators by the sub-contractor in this scenario would be standard rated, if the subcontractor is registered for VAT.
Thank you.