SI 2019/954 - The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019

Released 20 May 2019

SI 2019/954 amends VATA 1994, Sch. 7A, Grp. 2 to bring UK law into line with EU law from 1 October 2019.

The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 amends the Value Added Tax Act 1994, Sch. 7A, Grp. 2 (charge at reduced rate: installation of energy-saving materials) to limit the scope of the reduced rate of VAT for energy saving materials following a decision of the European Court as a result of an infraction by the European Commission. It removes from the scope of the relief the installation of wind and water turbines. It also restricts the scope of the reduced rate to installations made in accordance with the UK’s social policy or where the cost of the energy saving materials installed is not seen to be significant in the context of the overall cost of the installation thereby bringing UK law into line with EU law. The amendments have effect in relation to supplies made on or after 1 October 2019, except supplies paid for before that date, and supplies made pursuant to a contract entered into before that date.

The document is available here.

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