The Treasury advises that the scope of the temporary zero-rate of value added tax for the supply and installation of energy-saving materials has been widened to include necessary preparatory work undertaken for the installation of ground source and water source heat pumps.
Group 23 in Schedule 9 of the Value Added Tax Act 1996 has been amended to widen the temporary zero-rate
The respective Order amends the Value Added Tax Act 1996 to widen the scope of the temporary zero-rate of value added tax for the installation of energy-saving materials into buildings solely for charitable purpose, such as village halls or similar recreational facilities in the local community. The meaning of ‘installing energy saving materials’ is broadened to include necessary preparatory work undertaken for the installation of ground source and water source heat pumps.
The temporary zero-rate of value added tax for the supply and installation of energy-saving materials applies from 1 April 2022 to 31 March 2027 in the Island.
These amendments are required under the terms of the Customs and Excise Agreement 1979 to keep the rules and procedures in relation to customs and excise duties in line with those in place in the United Kingdom.
For general enquiries please email customs@gov.im or call +44 1624 648130 (Monday to Friday 8:30am to 4:30pm).
