VAT relief for supplies of energy-saving materials
The Isle of Man is advancing a distinctly ‘green’ agenda by reducing VAT for specific energy-saving materials to promote environmental benefits.
Further to the introduction of the Value Added Tax Act (Amendment)(No.3) Order 2022, zero rate VAT will be applied to supplies of services and installation of energy-saving materials.
These supplies were previously subject to the reduced rate of 5%.
The implementation will take place retroactively, from 1st April 2022 to 31 March 2027.
The Order also expands the scope to energy-saving materials, to include water and wind turbines, and again serves to underline how fiscal policies can promote wider societal agendas.