Hi Clare_74 Porter,
It can be sometimes difficult to work out whether a supply of construction work is deemed a single supply or a multiple supply.
The guidance states:
When energy-saving materials are installed at the same time as other goods and services, you must determine whether they constitute a single supply (which is subject to just one VAT rate) or multiple supplies (which may potentially be subject to different rates of VAT).
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.
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 are carried out at the same time, such that, the customer perceives that what they are getting is a single supply
Please see below:
Energy-saving materials and heating equipment (VAT Notice 708/6)
The supplier will need to decide the nature of the supply/supplies by carefully following this guidance to judge whether it is indeed a single supply of construction services or a mutiply supply of construction services and energy saving services.
Thank you.