Materials supplied with central heating systems—appropriate rate of VAT
In AN Checker Heating & Service Engineers v HMRC (TC02895 – 7 October) a partnership installed central heating systems. In accounting for VAT it treated part of the consideration which it received as qualifying for the reduced rate of 5%. HMRC issued an assessment on the basis that the partnership was making a single composite supply of a central heating system which was chargeable at the standard rate of VAT. The First-tier Tribunal dismissed the partnership’s appeal. Judge Paines held that ‘the supply of the installation of energy-saving materials together with services of installation of a boiler or of a central heating system is a single supply subject to a single rate of VAT at the standard rate’.
Materials supplied with central heating systems—appropriate rate of VAT
In AN Checker Heating & Service Engineers v HMRC (TC02895 – 7 October) a partnership installed central heating systems. In accounting for VAT it treated part of the consideration which it received as qualifying for the reduced rate of 5%. HMRC issued an assessment on the basis that the partnership was making a single composite supply of a central heating system which was chargeable at the standard rate of VAT. The First-tier Tribunal dismissed the partnership’s appeal. Judge Paines held that ‘the supply of the installation of energy-saving materials together with services of installation of a boiler or of a central heating system is a single supply subject to a single rate of VAT at the standard rate’.
