The Dutch government plans to cancel the VAT on the supply and installation of solar panels on or near houses from January 1, 2023. If the VAT rate could be lowered to zero from current 21%, hundreds of euros could be saved for each homeowner.
The proposal to waive the VAT on solar panels has been included in the legal amendment submitted to the public for consultation today. However, the government stated that the plan was dependent on and subject to budgetary feasibility, the outcome of current negotiations and implementation review.
Since the end of last year, EU member states have been allowed to supply and install solar panels in and near private houses, office buildings, public buildings and other buildings involving public interests, and implement zero VAT rate. The Dutch government also showed their effort on studying relevant measures in its report of February.
At present, private holders of solar panels can fully or partially recover the VAT paid through registration and declaration. As a small entrepreneur, they are paid to provide electricity to energy companies. However, not all such entrepreneurs would do it.
If the VAT was canceled, it would save so much effort for solar panels users and tax authorities in applying for tax refund.
