Starting January 1, 2023, a 0% VAT rate applies to solar panels. However, there are a number of conditions that must be met.
The 0% VAT rate applies not only to the solar panels themselves, but also to all other materials and services related to the solar panel system.
The 0% VAT rate only applies to a solar panel system “on or in the vicinity of a residence”. A shed, garage, or garden will therefore also fall under this scheme, but your camper, boat, holiday home, a roof of a commercial building, or a meadow will not fall under the 0% VAT rate.
The invoice date is leading! Suppose there is an order from 2022 that will be delivered in 2023. Will this fall under the 0% VAT scheme or not? That depends on when the invoice was made.
All orders with an invoice date in 2022 or earlier are eligible for the VAT refund as described here.
We are responsible for determining whether the goods/services qualify for the 0% VAT rate. If we deliver to a business customer (such as an installer), we are obliged to use the 21% VAT rate. The business customer can of course fully claim this back as “input tax” on the VAT return and can then decide whether to pass on the goods/services with the 0% or 21% VAT rate, depending on whether the system is placed “on or in the vicinity of a residence”.
An owners’ association (VVE), foundation, or association can also use this scheme, but even then the system must be installed “on or in the vicinity of a residence”. An owners’ association that installs the panels on an apartment building can therefore do this at the 0% VAT rate. However, a foundation, company, or association that installs the system on an office building, industrial hall, or sports canteen cannot take advantage of the 0% scheme, but (if subject to VAT) they can of course fully claim back the 21% of this purchase as “input tax” on the VAT return.
