- Retrofitted battery energy storage systems (BESS) in the UK will be exempt from the 20% VAT starting from 1 February 2023.
- Previously, BESS were only exempt when installed alongside other energy-saving materials like solar.
- The exemption for retrofitted BESS was not initially mentioned in the Battery Strategy published in November.
- The government agreed to include retrofitted BESS in the VAT exemption after a consultation on expanding the relief on energy-saving materials.
- The extension aligns battery storage with other energy-saving materials and has been praised by industry associations.
- The government is urged to further extend the VAT exemption to include thermal storage and electric vehicle chargepoints.
Source: current-news.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
