Increasing energy efficiency is becoming one of the key ways to optimize the Dutch family budget. At the beginning of April 2022, the Dutch government adopted the National Thermal Energy Conservation Program (Nationaal Isolatieprogramma, NIP), which provides for subsidies to improve home insulation. Remains up-to-date VAT refund (BTW) for solar panel installation.
What now?
Currently, for the purchase and installation of solar panels by private homeowners, VAT rate of 21%. In monetary terms, this is hundreds of euros.
But not everyone takes advantage of this opportunity due to ignorance. As a result, the purchase and installation of solar panels costs the full cost. To receive compensation from the state, you can prepare the necessary documents yourself or use our service "VAT refund for the installation of solar panels».
What does the government propose?
The government has submitted for public discussion an amendment to the law, according to which VAT on the supply and installation of solar panels is canceled from January 1, 2023. Accordingly, the cost of solar panels will decrease - Dutch homeowners will be able to save hundreds of euros on each purchase and installation of solar panels.
We remind you that the EU Member States have been allowed to apply the zero VAT rate for the purchase and installation of solar panels on private houses, public and other buildings, as well as in their immediate vicinity since the end of last year. In February, the government announced that this option was also being explored for the Netherlands.
Nuances
The Ministry of Finance aims to move to the application of a zero VAT rate for the purchase and installation of solar panels as soon as possible - from January 1, 2023. Therefore, it was decided not to apply this tax benefit for public buildings yet.
But for commercial premises from 2023 energy efficiency requirements are introduced, so the issue of installing solar panels for the owners of such real estate is also very relevant.
Note! While the questions remain unresolved:
- what will be the VAT rate for taxpayers with a home office and shared energy supply for residential and office space;
- whether the zero VAT rate will apply to roof-mounted solar panels (BIPV systems).
Potential Benefits
“Resetting” VAT will make it possible to do without the VAT refund procedure, since this tax will not be levied on the purchase and installation of solar panels. The benefits are:
- For taxpayers - there is no need to prepare and submit relevant documents to the tax service;
- For the tax service, the number of bureaucratic procedures is reduced.
According to officials from the Ministry of Finance, it will be possible to comprehensively assess the effectiveness of "zeroing" VAT on the purchase and installation of solar panels only a year after the introduction of this tax benefit. At the same time, negative aspects will be revealed. In particular, the following questions will be answered:
- whether the burden on the tax authorities has decreased in the absence of a VAT refund;
- How much has the price of solar panels changed?
Solar panels are already in high demand due to high electricity tariffs. It is expected that in connection with the abolition of VAT, solar panels will be of interest to even more private individuals.
Our comment
Buying and installing solar panels is definitely a useful step towards making your home more energy efficient. Make a purchase this year or wait for the government's announced VAT "zero"? You decide. But VAT refund for the installation of solar panels With our support, this is not a problem at all.
Publication Date: 01.06.2022
