Vat on replacement solar inverter — MoneySavingExpert Forum
Should VAT have been charged at 5% or 20% on the replacement unit?
You can only get this 0% rate if you purchase your equipment from the same company that you use to install it. So if you buy solar panels from one company, then hire a different firm to install them, the installation will come with 0% VAT – but the original purchase won't. And the 0% VAT rate doesn't just apply to solar panels and batteries.
There's no VAT on solar panels or storage batteries across the UK for all households and charitable bodies. This 0% rate will last until at least 31 March 2027, when it's set to rise to 5%.
1. Purchase & Installation When a business decides to purchase and install a commercial solar PV system, VAT on solar installations is applied at the standard rate of 20%. This includes VAT on solar panels, inverters, batteries, mounting hardware, and any related labour or consultancy services.
This briefing explains the current VAT treatment on the installation of energy-saving materials in the UK, analyses recent changes, and outlines recent developments. A zero-rate of VAT on the installation of energy-saving materials (ESMs), including solar panels, in residential accommodation, was introduced on 1 April 2022.
PDF version includes complete article with source references.
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