Solar panel owners return the generated energy to energy companies for a fee, so they have to pay VAT. Depending on the possible volumes of electricity generation, the VAT rate can be fixed, in the form of a payment to the budget of a predetermined amount.
Formally, the fixed VAT rate for solar generation applies only to installations with a generating capacity of no more than 10 kW. However, most of these installations are located in residential buildings or in close proximity to them: such placement allows the use of a flat rate for solar generation installations with a capacity of up to 15 kW inclusive. Entrepreneurs and self-employed individuals who have solar panels on or near their home can also take advantage of the flat VAT rate on solar generation volumes.
When do individuals not need to register with the tax office?
If an individual has purchased solar panels with a zero VAT rate, the capacity of the installation does not exceed 15 kW, and the cash turnover for the generated electricity does not exceed 1800 euros per year, the owner of solar panels located on or near the house is exempt from VAT and does not must submit a declaration to the tax authorities - provided that he does not conduct business related to the payment of VAT. Find out about the purchase of solar panels without VAT from our article.
Sizes of fixed VAT rates for the use of solar panels
Owners of solar power generation installations that are not eligible for VAT exemption may pay a flat value added tax. Its size depends on the capacity of the installation and its location.
If the solar generating plant is non-integrated (located separately from the house, next to it) (in euros):
- At maximum generation power from 0 to 1000 W - 20;
- from 1001 to 2000 W - 40;
- from 2001 to 2000 W - 60;
- from 3001 to 4000 W - 80;
- from 4001 to 5000 W - 100;
- from 5001 to 6000 W - 120;
- from 6001 to 7000 W - 140;
- from 7001 to 8000 W - 160;
- from 8001 to 9000 W - 180;
- from 9001 to 10 W - 000;
- from 10 to 001 W - 11;
- from 11 to 001 W - 12;
- from 12 to 001 W - 13;
- from 13 to 001 W - 14;
- from 14 to 001 W - 15.
If solar panels are built directly into the house, depending on the capacity of the power plant, the fixed VAT rate will be (in euros):
- At maximum generation power from 0 to 1000 W - 5;
- from 1001 to 2000 W - 10;
- from 2001 to 2000 W - 20;
- from 3001 to 4000 W - 30;
- from 4001 to 5000 W - 40;
- from 5001 to 6000 W - 50;
- from 6001 to 7000 W - 60;
- from 7001 to 8000 W - 70;
- from 8001 to 9000 W - 80;
- from 9001 to 10 W - 000;
- from 10 to 001 W - 11;
- from 11 to 001 W - 12;
- from 12 to 001 - 13;
- from 13 to 001 - 14;
- from 14 to 001 - 15.
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Publication Date: 20.03.2023
