Skip to content
Solved
SearchBrowse
Sign in

Contents

Official guidance
VAT Energy-Saving Materials and Grant-Funded Heating Supplies

VENSAV3000 · Energy-saving materials

  • VENSAV3010 · Introduction
  • VENSAV3020 · Rules applying to Great Britain with effect from 1 October 2019 until 31 March 2022 (while continuing to apply in Northern Ireland until 30 April 2023).
  • VENSAV3030 · Summary of changes
  • VENSAV3035 · Rules applying to Great Britain from 1 April 2022
  • VENSAV3036 · Rules applying to Northern Ireland from 1 May 2023
  • VENSAV3037 · Further expansion of the relief from 1 February 2024
  • VENSAV3040 · Insulation
  • VENSAV3050 · Controls for central heating and hot water systems
  • VENSAV3060 · Solar panels
  • VENSAV3061 · Electrical storage batteries
  • VENSAV3062 · Smart diverters
  • VENSAV3070 · Wind turbines and water turbines
  • VENSAV3080 · Ground source heat pumps and air source heat pumps
  • VENSAV3081 · Water source heat pumps
  • VENSAV3082 · Preparatory groundworks for water source heat pumps and ground source heat pumps
  • VENSAV3090 · Micro combined heat and power units and wood-fuelled boilers
  • VENSAV3100 · Meaning of residential accommodation
  • VENSAV3101 · meaning of buildings intended for use solely for a relevant charitable purpose
  • VENSAV3110 · social policy conditions applying to Great Britain between 1 October 2019 and 31 March 2022 and to Northern Ireland from 1 October 2019 and 30 April 2023
  • VENSAV3115 · the supply was to a qualifying person (the first social condition)
  • VENSAV3120 · the supply was to a relevant housing association (the second social condition)
  • VENSAV3130 · the supply was to a residential accommodation building intended for use for a relevant residential purpose (the third social condition)
  • VENSAV3140 · evidence to support that a social condition is satisfied
  • VENSAV3150 · meaning of the “open market value of the supply of the materials” and the “cost of the total supply”
  • VENSAV3160 · examples of how the 60% test worked
  • VENSAV3170 · accounting for VAT when the 60% threshold has been exceeded
  • VENSAV3180 · materials purchased in bulk
  • VENSAV3190 · temporary zero rate rules and transitional issues (Great Britain only)
  • VENSAV3195 · temporary zero rate rules and transitional issues (Northern Ireland)
  • VENSAV3200 · Energy-saving materials supplied with other works
  • VENSAV3210 · Single supplies of energy-saving materials
  • VENSAV3220 · Single zero-rated and standard-rated supplies
  • VENSAV3230 · Separate supplies
  • VENSAV3240 · Carving out energy-saving materials from a single supply
  • VENSAV3250 · Construction of new dwellings
  • VENSAV3260 · interaction between energy-saving materials supplied with other works and the 60% test (applicable to supplies made in Great Britain between 1 October 2019 and 31 March 2022 and in NI between 1 October 2019 and 30 April 2023).
  • VENSAV3270 · replacement roofs
  • VENSAV3280 · Replacement walls in prefabricated reinforced concrete (PRC) houses
  • VENSAV3290 · Meaning of ‘installation’
  • VENSAV3300 · Walkways and ladders
  • VENSAV3310 · Swimming pools
  • VENSAV3320 · Apportionment of energy-saving materials serving buildings used for both qualifying and non-qualifying purposes
  • VENSAV3330 · More than one job at the same premises
  • VENSAV3340 · Subcontractors
  1. Energy-saving materials: contents
  2. Energy-saving materials: single zero-rated and standard-rated supplies

VENSAV3220 | Energy-saving materials: single zero-rated and standard-rated supplies

From HM Revenue & Customs · VAT Energy-Saving Materials and Grant-Funded Heating Supplies

Outcome 2: single zero or standard rated supply

The energy-saving materials may be ancillary to, or an integral part of, a standard or zero rated supply. In this case, there is a single standard or zero rated supply.

Example 1: the replacement of a conservatory roof with elements of insulation (an energy-saving material) would be treated as a single supply of a roof replacement. This is because the insulation is ancillary to and a better means of enjoying the principal supply of a new thermally insulated roof. As a thermally insulated roof is not an energy saving material, its installation is a single standard-rated supply of a conservatory roof.

Example 2: the construction of an extension to a house with insulation for the walls and roof space would be treated as a single supply of an extension. The insulation is ancillary to and a better means of enjoying the principal supply of a new thermally-insulated extension. Therefore, this is treated as a single-standard rated supply of an extension to a house.

Example 3: the installation of a traditional gas central heating system may consist of a boiler, radiators, copper pipe, radiator valves, heating controls and so on. While some of these components may be reduced rated when supplied on their own, this would be treated as a single supply of the installation of a central heating system (which does not qualify as an energy-saving material). This is because all of the components when considered as a whole are an integral part of the installation of a new gas central heating system and so there is a single standard-rated supply of a new gas central heating system.

PreviousNext
PrivacyTerms