A couple VAT question

[confounded]

If we are repairing a system that we did not install do we charge 5% or 20% VAT

In another situation a customer (with a large system) would like us to carry out a year review to ensure they are making best use of the energy provided by the system. It is essentially energy efficiency consulting, would this fall under 5% VAT?

 

[TedM]

The lower rate of VAT generally only applies to the original supply and installation work not repairs or maintenance.

However if the customer is eligible for grant assistance for the costs then the VAT may be reduced to 5% for repairs as well. Also applies to any customer who is over 60 but only for a heating system so not likely to apply to PV.

HM Revenue & Customs: Paying reduced rate VAT on energy-saving materials

The consultancy work is going to be 20%.

Could it be any simpler?

 

[confounded]

Thanks TedM, I did read through the HMRC guidance but was struggling to make my own conclusion. I did feel it was likely to be as you have laid out.

 

[Somecamel]

'You'll also get the lower rate on any necessary extra work that needs to be done as part of the installation - this doesn't apply if you're having them installed as part of a larger project such as building a new roof or an extension, or installing a central heating system.'