The Renewable Energy Association has taken aim at a government proposal to hike up the VAT rates attached to some energy saving materials, including solar and battery storage. A consultation launched by HM Revenue & Customs, which closed late last week, has proposed an increase in the VAT attached to these energy saving materials from 5% to 20%, essentially eliminating a discount that had been applied to those products. It is not the first time that solar PV has been threatened with a higher rate of VAT. In 2015 the European Court of Justice ruled that the UK’s application of a discounted rate was illegal and, despite attempting to fight it, the government eventually conceded that the increase could not be averted.
Solar Power Portal 7th May 2019 read more »