Vat On Solar Panels In Up

Changes to the vat treatment of solar panels and other energy saving materials are not as extensive as first feared.

Vat on solar panels in up.

The government has introduced secondary legislation to amend the scope of the 5 rate to comply with european vat rules si 2019 958. Vat rate to increase for solar panels wind turbines and water turbines july 10 2019 hmrc has announced plans to increase the vat rate on the installation of solar panels in residential accommodation to 20 with effect from 1 october 2019. The treasury put forward legislation on monday to raise vat for home solar battery systems from 5 to 20 on the same day that mps are debating the government s new net zero carbon target for 2050. In an in roof or building integrated pv system the solar panels have a two fold function.

They keep the rain out like any normal roof plus they produce power. This took effect from 1 october 2019 although the government has stated that the majority of solar. At present vat is charged at the reduced 5 rate on the installation of energy saving materials esms including solar panels in residential accommodation. Since you would only get vat back for the power producing part you cannot claim the vat on the total investment costs back.

Therefore on receiving presidential assent the supply or importation of specialised equipment for the development and generation of solar and wind energy including deep cycle batteries which use or store solar power will be subject to vat from 1 july 2020. Following infraction proceedings by the european commission against the uk in 2015 hmrc published a consultation on proposed changes to the vat treatment of energy saving materials.