Are air conditioning units considered as Energy Saving Materials (ESM's) and therefore qualifying for reduced rate VAT, now 0%?
I'm struggling to tie-down an answer. Let's presume that the Air-con units both cool and heat and are installed by the seller in a domestic setting.
The questions is essentially are these air-con units "Air Source Heat Pumps"?
Go para 2.9 > 2.17 which reads:
“While the legislation for energy-saving materials (Note 1 of Group 2 of Schedule 7A of the VAT Act 1994) includes air source heat pumps within the meaning of energy-saving materials, it does not refer to air conditioning units.”
This contrasts to my clients large competitors saying things like the following:
So do Air conditioning installers need to charge VAT on domestic installations? The new announcement (Spring 2022 statement) means NO, they do not need to charge VAT to residential customers
When it comes to heating the home will this also include air conditioning units similar to boiler systems and thermostats? Air conditioning units are covered because they are considered to be air source heat pumps by virtue of its technology and dual use.
I just wondered if anyone has an experience in the area / knowledge if the interpretation has been tested or how it's usually applied?