01462 625047 |  Email


06 December 2012

European Commission set to overturn UK 5% VAT policy

Formal letters have been exchanged (but not published) between the European Commission (EC) and HM Revenue and Customs (HMRC) whereby the EC will trigger infraction proceedings in Spring 2013 via a hearing at the European Court of Justice which will effectively quadruple the costs of many energy saving devices, plus the labour costs of installing them.  The current 5% VAT rate on all insulants installed by contractors, TRVs and microgeneration, will return to the full rate of 20%.  The VAT rate on energy bills will remain at 5%, meaning consumption has a 15% advantage over conservation.

Energy in Buildings & Industry - Nov/Dec 2012