Solar panels and VAT

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Netherlands Tax Administration, Belastingdienst
Netherlands Tax Administration, Belastingdienst

Are you buying solar panels for your business premises? Or do you sell or install solar panel installations? Find out about paying, calculating and reclaiming VAT here.

VAT when purchasing solar panel systems

Are you having solar panels installed on your business premises? Then you pay 21% VAT. You can reclaim the VAT (in Dutch) for the purchase and installation of this system via your VAT return.

Are you an entrepreneur and are you having solar panels installed on your home, or another part of your residence? Then you do not pay VAT (in Dutch) for the solar panels, parts, and installation.

Paying VAT on electricity you generate

You use part of the electricity generated by your solar panels yourself. What remains, you feed back to the electricity grid. If you feed more back than you use, you will receive compensation from your energy supplier. This is called the netting arrangement (salderingsregeling). You usually pay VAT on the reimbursement. You do this in your VAT return. You calculate the VAT yourself. Sometimes you may calculate with a fixed amount (flat rate).

Read how to calculate and reclaim VAT on solar panels (in Dutch).

If you do not charge VAT to your customers yourself, you usually do not have to pay VAT on the fee either. For example, because you provide services to which the 0% rate applies. In that case, however, you must register for the small businesses scheme (KOR).

VAT when selling or installing solar panel systems

Do you sell and/or install solar panels? Whether you charge VAT to your customer depends on the type of property.

  • If you install the solar panels on a house, or another part of a residence, you charge 0% VAT.

  • If you install solar panels on or near premises without a residential function (business premises), you charge 21% VAT.

  • If you have solar panels on or near a property with both functions (a home that is also a business premises), you charge 0% VAT.

You can check the Addresses and Buildings key register (BAG) to find out if a property is a home or a business premises. If in doubt, you can contact the Netherlands Tax Administration.

Questions relating to this article?

Please contact the Netherlands Tax Administration, Belastingdienst