Retweeting a post from the Treasury which said, “We're cutting VAT on the installation of energy saving materials in residential properties from 5% to zero for the next five years”, Jacob Rees-Mogg, Minister for Brexit Opportunities and Government efficiency, said: “The EU would not allow us to do this, another benefit of Brexit.”
But in December 2021, the European Council had already approved a proposal to amend the EU rules on rates of value-added tax (VAT) to give member states more flexibility to set them. If adopted, solar panels for residential and ‘public interest’ applications would be included in the list of goods and services for which a maximum of 5% VAT could be levied.
If the UK was still in the EU, it would benefit from this legislation.
We approached Jacob Rees-Mogg’s office and the Cabinet Office to give him a chance to comment, but received no response.