Renewable VAT myths scotched at Industrial and Power Association seminar

Industrial and Power Association

 

 

 

 

The following ‘urban myths’ about renewable electricity generation and VAT were scotched recently at the latest Industrial and Power Association seminar hosted in association with Baker Tilly.

Discussing the potential pitfalls in VAT, tax and accounts when investing in power schemes, Jim Burberry, VAT Partner at Baker Tilly in Edinburgh, said:

 

Myth: Electricity generated from renewable sources by a Charity is a non-business/charitable activity

Fact: Electricity generated from renewable sources by a Charity is a business/Commercial activity

 

Myth: Electricity generated from renewable resources is subject to VAT at 5% when sold to the Grid

Fact: Electricity generated from renewable resources is subject to VAT at 20% when sold to the Grid

 

Myth: VAT compliance for renewable projects is the same for all investors

Fact: Tax/VAT compliance for renewable projects needs to be tailored and is specific to each investor.

 

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