Vat on solar PV 20 October 2021 at 9:22AM in Green & ethical MoneySaving 5 replies 101 views

mcn99

Apologies if this has been previously discussed, but the search on this site is pretty poor.

Is it common practice to split the invoice on an install to get around the 60% material cap that pushes the material VAT to 20% ?

ie basic install with a few items removed to get the labour >=40%, then invoice some of the addons like optimisers/divertor etc

Also what are the vat exclusion rules, i do have a daughter in receipt of PIP so i wonder if that would qualify for the lower rate.

What is the process of obtaining the lower rate properly, waiting for 60 isnt an option !

arty688

I think its very common to make sure the most of the invoice is 40% , the issue you may have with the PIP thing is that most companies are geared up to up the 40/60 thing so don't even know the rules outside that. That's my experience as I get PIP and no company I spoke to knew anything about the vat rules around it .

Spies

I thought it was 5% VAT on micro generation stuff?

This is the subtotal from my quote:

Sub Total (EX-VAT) £ 4,566.67
VAT @ 5% £ 228.33
Grand Total (inc VAT) £ 4,795.00

mcn99

5% on labour

20%Vat on material IF materials >=60% of total, otherwise 5%

BUT there is some exceptions.....if you are an old fart (60 and above, almost me) , receipt of benifits etc

So it can make a huge difference

Spies

mcn99 said:

5% on labour

20%Vat on material IF materials >=60% of total, otherwise 5%

BUT there is some exceptions.....if you are an old fart (60 and above, almost me) , receipt of benifits etc

So it can make a huge difference

Ah, I didn't realise that!

Verdigris

Nor me.

Glad to be old!

Would that apply to heat-pump and battery installations, too?