VAT on new electricity installations?

Question

I live in an isolated property with no mains electricity (in UK) - if I have a mains power supply installed should I be charged VAT on the installation? I don't seem to be able to get consistent answers...

Answer 1

Yes, @ 17.5%

Answer 2

Any form of supply is subject to VAT.
Whether that supply is at zero or standard (17.5%) rate is the only possibly source of contention.
The supply of a mains power connection is obviously a supply.
Therefore it is strikingly obvious that the supplier of the service, if a VAT registered supplier, must and can only charge you VAT on their supply (charge).
Unless there is some concession that the first supply of a mains power source to an isolated property is to be at zero rate, then 17.5% will apply.
Write to you local Customs & Excise office as they administer VAT, with the simple question "Is the first supply of a mains power source to an isolated propery subject to VAT at standard or zero rate" - its not a difficult concept is it.

Answer 3

If it is a residential property, a connection should normally be taxible at the REDUCED RATE of VAT (5%).

Check out the link below which has a list of reduced rate and standard rated supplys (section 2.2) and despite what others may say there is nothing strikingly obvious when it comes to VAT.

Answer 4

Only if the contractor is registered for VAT simple as!