UK 0% VAT for ESMs 🇬🇧

This article will cover how to set up the automated VAT calculations for UK projects based on the recent changes to regulations for Energy Saving Materials (ESMs)

You can read about the changes here: https://www.gov.uk/government/publications/changes-to-the-vat-treatment-of-the-installation-of-energy-saving-materials-in-in-great-britain/the-value-added-tax-installation-of-energy-saving-materials-order-2022

In order to set this up you should change the tax settings on your price scheme in Control > Pricing & Payments > Pricing schemes > edit. Set the tax settings to be "Tax included" 0% and "Including/Excluding tax" to be "Excluding tax".

This will mean that when that pricing scheme is used for a project in the UK, it will automatically determine the tax based on the components that are added to the system.

Based on the latest changes this will be 0% VAT for any systems that include ESMs such as solar panels. However, if the system detects that the total costs for the modules on the system is 0 then it will apply a 20% VAT as battery only systems are not eligible for the 0% VAT. 

NOTE that if the "Enter price manually ($)" or "Enter price manually ($/W)" pricing scheme is selected in Design > Pricing tab, then it will assume that the VAT is 0%. You can update this if it is incorrect by using the VAT override fields at the bottom of the Pricing tab in Design.