Q: I ask a question about the level of VAT chargeable when a flat roof replacement is carried out and includes insulation. It would appear there is contradictory advice whether this should be 5 per cent or 20 per cent.
FPRA Hon Consultant Gordon Whelan replies:
It depends. The reduced rate of 5 per cent applies for the installation of energy saving products such as insulation on roofs. However, if the insulation is supplied as part of an overall roof replacement project and the insulation is just one part of the roof replacement then the reduced rate will not apply and standard rate VAT (20 per cent) is applied to the whole cost.
[Submitted June 2017]