Further to the Chancellor’s spring statement, Energy Saving Materials and heating equipment are now zero-rated for VAT. This includes micro combined heat units, which includes to Split Air Conditioning Systems. Many split air conditioning systems provide energy efficient cooling and heating, which has been recognised within the Governments change to VAT on energy saving heating equipment.
The zero-rated VAT on energy saving heating equipment, which includes Split Air Conidtioning Systems, is designed along with other incentives such as the Boiler Upgrade Scheme (BUS) to encourage homeowners to switch from fossil fuelled heating systems to low carbon solutions. The zero VAT rate is scheduled to remain in place for five years.
For full details regarding the changes, please click the following link to GOV.UK VAT Notice for energy-saving materials and heating equipment. The relevant clauses on the VAT notice are 2.1, 2.0, 2.10 and 2.18.
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