Battery VAT rate

[Adamantium]

Did we ever get a final answer on this?

 

 My solar was installed at 0% and I know there’s an allowance for batteries to be 5% when installed with a pv system, but I’ve yet to confirm the situation on secondary fit of a battery in a new build.

 

i saw the old thread on here but it died without the answer be being confirmed. Anyone go through this and find out for sure.

 

 My house hasn’t been signed off yet so two years in, it’s still a new build.

[Temp]

Not 5% any more?

 

https://www.tileenergy.uk/huge-vat-increase-on-solar-batteries

 

Currently, new Solar PV system with Battery installations attract just 5% VAT, acting as a great incentive for our customers. However, this is due to come to an end in October 2019.

 

On Monday 24th June HMRC put forward new legislation to increase the VAT on home solar battery systems from 5% to 20%. This was voted on by parliament, accepted into law on June 25th and this increase is likely to come in to effect on October 1st, 2019.

 

 When challenged, HMRC blamed EU regulations because they “rule out preferential VAT rates for energy saving equipment under state aid rules and whilst an EU member our rights and obligations remain unchanged”

What this is likely to mean is a significant price increase on your Solar battery. What is galling is that VAT on coal used as a domestic fuel remains at 5%. However, you can beat the increase by getting your order in now. All you have to do is get in touch with Tile Energy on 01793 287777 or info@tileenergy/uk

[newhome]

According to HMRC’s list batteries are excluded but it’s not clear whether battery storage is included in this. I think the only way to be sure is to write to them and get something in writing. Even if someone else managed to reclaim the VAT it doesn’t necessarily mean that everyone will be able to. A lot seems to depend on how closely they look at your claim. 

 

Things you can claim for

 

 

[Adamantium]

Temp,

 

I’m not looking for the 5% rate, I’m looking for the 0% rate for new build building materials.

 

i was hoping someone had written to hmrc already.

[Jeremy Harris]

@vivienz may know, as I believe she was looking to include battery storage within their build as a zero rated item.

[Adamantium]

Thanks Jeremy.

[vivienz]

Just to confirm on this.  I spoke to HMRC some months back and explained that I was having a battery storage system installed as part of the building's systems, connected up to the PV array.

 

HMRC confirmed that although the PV system and the battery system came from different suppliers/installers, as it was all part of the building's power system, I can claim back the VAT on the batteries.

[Andrew]

This is relevant to our build and good news, so thanks for the confirmation @vivienz.

 

Did you mange to get this in writing or was it just a verbal confirmation?

[vivienz]

It was a verbal confirmation, but from their specialist team that deals with the DIY/self build area of VAT.  I had to book the call and wait for a few days for a specialist to get back to me, so it wasn't one of the generalists who confirmed it.

[Dan F]

On 05/03/2020 at 15:20, vivienz said:

It was a verbal confirmation, but from their specialist team that deals with the DIY/self build area of VAT.  I had to book the call and wait for a few days for a specialist to get back to me, so it wasn't one of the generalists who confirmed it.

 

Did this claim go through?  I've tried calling HMRC to clarify this given there is mixed information online but they just point me to their web pages ?

 

In our case our PV install was zero-rated and our PV supplied has quote to zero-rate the battery intsall too.  They problem is they don't have stock and other suppliers seem to be a lot less keen to zero-rate the battery supply/install!   I could pay the VAT and reclaim, but from what I've read online this looks like a risk.