Invest now - reduced 5% VAT rate
Space Air must advise that the reduced 5% VAT rate on residential / charitable air source heat pumps may jump up to 20% following a ruling by the European Commission.
Following on from our previous press release (Reduced VAT on Heat Pumps), below is more information regarding what is covered under the reduced 5% VAT rate.
Reduced 5% VAT applies to energy saving materials or equipment and installation as long as both are on the same invoice. However incidental work’s such as plastering or painting to make good can also qualify for reduced 5% VAT rate as well as repair and maintenance of renewable source heating systems including ground and air sourced heat pumps. Controllers are also covered under the reduced 5% VAT rate.
If you would like further information please visit: http://www.hmrc.gov.uk/vat/sectors/consumers/energy-saving.htm/
Note: The link relates to the current status only. Space Air will advise when more is announced about VAT changes