VENSAV3190 - Energy-saving materials:When the new temporary zero rate rules take effect and transitional issues (Great Britain only)

The new rules affect supplies of installations of energy-saving materials that have a time of supply on or after 1 April 2022. The time of supply is determined in accordance with the normal VAT accounting rules (usually the earliest of the date that the installation is completed, the date that the invoice is issued or the date that payment is made) and if this is on or after 1 April 2022, the installation will qualify for the zero rate. If an installation commenced before 1 April 2022 and a deposit was paid prior to 1 April 2022, then the deposit will be reduced rated at 5%. However, if the final payment was made on or after 1 April 2022 this will be zero rated.

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