HMRC to increase VAT on solar panels

The government is to increase the VAT rate for solar panels from 5% to 20%, the Independent newspaper has reported, describing it as a “a huge hike considering that Parliament has recently declared an environment and climate change emergency”. Other materials for renewable energy and battery storage products will also be subjected to the same VAT hike.

Fossil fuels including gas and coal will not suffer any change and their VAT rate will remain at 5%.

The new rates will apply from 1 October 2019.


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