VENSAV3210 - Energy-saving materials: single supplies of energy-saving materials

Outcome 1: single supply of energy-saving materials eligible for relief (whether supplied at the reduced rate of 5% or temporary zero rate in Great Britain between 1 April 2022 to 31 March 2027).

The standard rated elements may be ancillary to, or an integral part of, the installation of energy-saving materials. In this case, there is a single supply of energy-saving materials that is eligible for relief.

Example 1: the installation of loft insulation (an energy-saving material) and cutting a new loft hatch in the ceiling to give access to the loft would be treated as a single supply of the installation of loft insulation. This is because the cutting of the loft hatch and making good the access is, in itself, a simple construction supply, but as the services have been carried out solely in support of the loft insulation, they become ancillary. Therefore, there is a single supply of the installation of energy-saving materials which qualifies for the reduced rate of 5% (subject to the 60% test for supplies made in Great Britain between 1 October 2019 and 31 March 2022, and for supplies made in Northern Ireland from 1 October 2019) or the temporary zero rate for supplies made in Great Britain between 1 April 2022 and 31 March 2027.

Example 2: the combined installation of solar panels (an energy-saving material) and a battery for the storage of power generated from the solar panels would be treated as a single supply of the installation of solar panels. This is because the installation is carried out at the same time, the customer perceives that it is receiving a single supply and the battery is a better means of enjoying the principal supply of solar panels. Therefore, there is a single supply of the installation of energy-saving materials which qualifies for relief either at the reduced rate (subject to the 60% test) or at the zero rate