Vat On Solar Panels In Up

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.

Vat on solar panels in up.

Cost of panels to rise as vat goes up to 20 while end of feed in tariffs means there s currently no payment for excess electricity sent to the grid. 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. In an in roof or building integrated pv system the solar panels have a two fold function. Changes to the vat treatment of solar panels and other energy saving materials are not as extensive as first feared.

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. 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. Huge vat rise on solar panels makes. The government has introduced secondary legislation to amend the scope of the 5 rate to comply with european vat rules si 2019 958.

They keep the rain out like any normal roof plus they produce power. Since you would only get vat back for the power producing part you cannot claim the vat on the total investment costs back.