When is a reduced rate of VAT applicable to the installation of air conditioning systems?
From 7th April 2005, HM Customs and Excise allows businesses installing air source heat pumps in all forms of residential accomodation and certain charity buildings to apply VAT at the rate of 5%. This rate applies to the installation; the equipment is invoiced by the supplier at the normal VAT rate. Further information is available at www.hmce.gov.
