STA Calls On HMRC To Scrap Proposed VAT Changes For Energy Saving Materials
Industry leaders join the Solar Trade Association to protect ‘smart’ home market.
You may be aware of proposals to change the current reduced rate of VAT on solar installation costs from 5% to the standard VAT rate of 20%.
If this change comes into force: The cost of installation will be charged at the full 20% rate. This only when the cost of the materials exceeds 60% of the total cost of the installation.
Solar only installations may not be affected as most will fall under the 60% threshold, however, installations with battery storage and ones using more premium materials are more likely to be subject to the standard rate of VAT.
STA Director of Advocacy and New Markets Léonie Greene said; “We are deeply unhappy with these VAT proposals which fly in the face of the recently declared Climate Emergency”. Read more in the official press release.