UK VAT | VAT Reclaim
1 mins | June 20, 2022

UK unveils zero VAT on energy saving home installation

The UK is scrapping VAT on energy saving materials installed in homes. UK homeowners who install materials and technologies such as heat pumps, solar panels and insulating materials will not incur VAT for the next five years. Energy savings...

UK unveils zero VAT on energy saving home installation

The UK is scrapping VAT on energy saving materials installed in homes. UK homeowners who install materials and technologies such as heat pumps, solar panels and insulating materials will not incur VAT for the next five years. Energy savings materials will be zero rated for five years. After that, such materials will be subject to a reduced VAT rate of 5%.

Chancellor Rishi Sunak announced the VAT cuts in his 2022 Spring Statement. Sunak said that the move aims to “help households improve energy efficiency and keep energy costs down – as well as supporting the UK’s long-term Net Zero ambitions.” 

VAT to boost a green economy

UK lawmakers previously called on government to cut VAT to support a green recovery. VAT cuts on insulation and energy-efficient household technology is in line with parliamentary Environmental Audit Committee (EAC) recommendations.

According to policymakers, lower VAT will both help meet climate goals and boost the post-lockdown economic recovery.

The UK government has set  an ambitious net zero carbon target for 2050. 

A more effective way to adapt to changing VAT regulations 

VAT regulations are constantly shifting, as regulators race to meet changing political and economic realities. VAT IT provides a complete VAT compliance and recovery solution that ensures any business has the technology and systems it needs to quickly and effectively adapt as VAT rules change. 

Get in touch with VAT IT for a customised VAT recovery and compliance solution for your business. 

 

 

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