Energy: VAT

(asked on 8th July 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the supply of materials for an energy saving materials installation is included under VAT Notice 708/6 defined under 2.3.2 as ancillary services/supplies; and whether it is his Department's policy that those ancillary services or supplies be included in calculations of energy saving materials installations for the purposes of establishing which VAT rate will apply under the new Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 11th July 2019

The supply of materials for an energy saving materials installation is not considered to be an ancillary service. For the purposes of establishing which VAT rate will apply under the new Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019, where the 60 per cent limit is exceeded, the service element of the installation will continue to benefit from the reduced rate.

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