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

• Citation: S.I. 2019/958
• Sections: 6

Section 1 Citation, commencement and effect

(1) This Order may be cited as the Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 and comes into force on 1st October 2019.

(2) The amendments made by this Order have effect in relation to supplies made on or after 1st October 2019, except for—

(a) supplies paid for before that date, and

(b) supplies made pursuant to a contract entered into before that date.

Section 2 Amendment of Group 2 of Schedule 7A to the Value Added Tax Act 1994

In Part 2 of Schedule 7A to the Value Added Tax Act 1994, Group 2 (installation of energy-saving materials) is amended as follows.

Section 3 Amendment of Group 2 of Schedule 7A to the Value Added Tax Act 1994

For items 1 and 2 substitute—

(1) The supply of services of installing energy-saving materials in residential accommodation, where the energy-saving materials are not supplied by the person supplying the services.

(2) The supply of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed, where—

(a) the supply is made to a qualifying person and the residential accommodation is the qualifying person’s sole or main residence,

(b) the supply is made to a relevant housing association, or

(c) the residential accommodation is a building, or part of a building, used solely for a relevant residential purpose.

(3) The supply, in a case not falling within item 2, of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed (but see Note A1).

Section 4 Amendment of Group 2 of Schedule 7A to the Value Added Tax Act 1994

After “NOTES” (and before the italic heading “Meaning of energy-saving materials”) insert—

Restriction on item 3

(A1)

(1) Item 3 does not apply to a supply so far as relating to the energy-saving materials installed if the open market value of the supply of the materials exceeds 60% of the cost of the total supply to the person to whom it is made.

(2) In this Note, the reference to cost is to cost net of VAT.

Section 5 Amendment of Group 2 of Schedule 7A to the Value Added Tax Act 1994

In Note 1 (meaning of “energy-saving materials”) omit paragraphs (f) and (g).

Section 6 Amendment of Group 2 of Schedule 7A to the Value Added Tax Act 1994

After Note 3 insert—

Meaning of “ qualifying person”

(4) For the purposes of this Group “qualifying person” has the same meaning as it has for the purposes of Group 3 (see paragraph 6 of the Notes to that Group).

Meaning of “relevant housing association ”

(5) For the purposes of this Group “relevant housing association” has the meaning given by Note (21) of Group 5 of Schedule 8 (zero-rating: construction of buildings etc.) .