Rate of VAT on gas boiler servicing

Zalien

Hi. There was a discussion on this a number of years ago but it seemed to be rather inconclusive. My gas boiler servicing engineer charges 20% VAT on an annual service. Following links to the relevant government web sites from the previous discussion I found the following:

1. VAT rates on different goods and services - A list of goods and services showing which rates of VAT apply and which items are exempt or outside the scope of VAT: Heating equipment and connection of gas supply (to the extent they are grant-funded by certain funders to people aged over 60 or who are in receipt of certain benefits)

It states:  "The installation, repair and maintenance of a boiler, radiators, pipework and controls forming a central heating system (including micro combined heat and power systems)".  Rate 5%  VAT Notice 708/6.  

As you can see below, the relevant section of VAT Notice 708/6 seems to remove the 'grant-funded' condition.

2. Energy-saving materials and heating equipment (VAT Notice 708/6), - Section 3.3 Central Heating Systems

It states:  "....The reduced rate includes repairs and replacements of such equipment, whether or not the original system was installed under a relevant grant-funded scheme.

Is anyone - consumer or professional in the trade - able to give me a definitive answer: 5% or 20%. 

Best wishes, Zalien

[Deleted User]

I think that you may have missed an important caveat:

If heating equipment is funded through an energy efficiency grant

In Great Britain or Northern Ireland, you’ll pay 5% VAT on heating equipment work funded through an energy efficiency grant if you’re eligible.

• installation of heating appliances
• installation, repair and maintenance of central heating systems
• installation, repair and maintenance of renewable source heating systems

Energy products that do not qualify

You pay 20% VAT for:

• heating equipment that is not funded through an energy efficiency grant
• energy efficient boilers
• secondary or double glazing
• low emission glass
• energy efficient fridge freezers
• wind turbines (Northern Ireland only)
• water turbines (Northern Ireland only)

Source: Gov.UK

Zalien

Thanks Dolor. 

I had interpreted the ".. whether or not the original system was installed under a relevant grant-funded scheme" as being applicable. It applies to Central Heating Systems (which mine is part of) and not heating equipment.

What do you think?  

[Deleted User]

Zalien said:

Thanks Dolor. 

I had interpreted the ".. whether or not the original system was installed under a relevant grant-funded scheme" as being applicable. It applies to Central Heating Systems (which mine is part of) and not heating equipment.

What do you think?  

You need a tax accountant not an armchair poster. I have always paid 20% on my boiler servicing and heating repairs.

Zalien

Well I suspect if you're paying it then it's probably legit :-)

Thanks for getting back to me.