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HMRC internal manual

VAT Energy-Saving Materials and Grant-Funded Heating Supplies

Law and regulations

The relevant legislation for the reduced rate of VAT for supplies and installation of energy- saving materials is:

  • EC Law: Directive 2006/112 Annex III point 10;
  • VAT Act 1994, Section 29A - holds that goods and services specified in Schedule 7A to the Act are reduced-rated;
  • VAT Act 1994, Schedule 7A, Group 2 - Installation of energy-saving materials; and
  • VAT Act 1994, Schedule 7A, Group 3 - Grant-funded installation of heating equipment or security goods or connection of gas supply.