SI 2019/958 - The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019

Released 21 May 2019

SI 2019/958 replaces SI 2019/954 which has been withdrawn.

The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 was originally published as SI 2019/954 on 20 May 2019 showing the dates made and laid before the House of Commons as 20 March 2019. SI 2019/954 has been withdrawn and the Order re-issued as SI 2019/958 showing the date made as 20 May 2019 and the date laid before Parliament as 21 May 2019. SI 2019/958 is otherwise identical to SI 2019/954. It amends the Value Added Tax Act 1994, Sch. 7A, Grp. 2 (charge at reduced rate: installation of energy-saving materials) to limits 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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