We have come across instances where utility companies have insisted on charging standard rated VAT on installations for new domestic properties.
We think that such installations should be zero rated as services supplied in the course of construction of new dwellings. When part of a reduced rated project, we would expect installations also to be reduced rated.
HMRC guidance is found in Notice 708 (Buildings and Construction) para 3.3.4, and Notice 701/19 (Fuel and Power) para 2.6, which are consistent on this point.
About Les Howard
Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.