0% VAT for solar panels on homes from 1 January 2023
From 1 January 2023, solar panel installations on homes and other adjoining buildings have a VAT rate of 0%. If your business premises is also part of your home, you will not be charged VAT for new solar panel installations after this date.
Please note: solar panel installations on any commercial property that is not a home are still subject to 21% VAT.
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 on 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.
VAT when purchasing solar panel systems
The situation as of 1 January 2023:
- Are you having solar panels installed on your business premises? Then you pay 21% VAT. You can reclaim the VAT 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 for the solar panels, parts, and installation.
VAT on electricity you generate
Entrepreneurs with a solar panel installation registered in their name must typically pay VAT on the electricity generated by this system. You declare this in your VAT return. An exception is when you are using the Small Businesses Scheme (Kleineondernemersregeling, KOR), meaning your business is exempt from VAT.
Calculate VAT for electricity you generate
You supply the electricity generated by your solar panels to your energy supplier. You must pay VAT to the Tax Administration on the electricity you supply and use yourself. You have to calculate this VAT yourself. Read how to calculate and reclaim VAT on solar panels (in Dutch).