If the contractor charges 5% VAT for insulation work what rate they pay for the materials?
Your supplier will charge you the full rate of VAT for materials however when you install them you would charge the customer 5% the reduced rate
2.1 What installations are reduced-rated?
The reduced rate applies to the installation of certain specified energy-saving materials (see paragraph 2.5) in:
- residential accommodation (see paragraph 2.16); or
- a building used solely for a relevant charitable purpose (see paragraph 2.17).
The reduced rate applies whether or not the installation is grant-funded and includes the price of the goods themselves.
If you supply energy-saving materials without installing them your supply is standard-rated.
See
See our main site for external wal insulation work
www.wall2wallsolutions.co.uk