Energy-saving materials permanently installed in dwellings and buildings used for a relevant residential purpose providing the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT)
VAT treatment5%
What this means for your business
- Charging VAT
- VAT is charged, but at the reduced rate (5%).
- Reclaiming VAT
- VAT paid on costs related to making this supply can normally be reclaimed in full as input tax.
Official guidanceEnergy-saving materials — supply only — are standard-rated — VAT Notice 708/6 (opens in a new tab)