VAT zero rate on solar panels

From January 1, 2023, the VAT rate for the supply and installation of solar panels on or near a property is 0%. You can read more about the conditions on this page.

Solar panels mean panels whose function is to generate power from sunlight using photovoltaic cells (also called PV cells or solar cells).

For which solar panels does the zero rate apply?

For the next solar panels The VAT rate of 0% applies:

• non-integrated solar panels
  These solar panels are the most commonly used. They are mounted on the roof or somewhere else near the house.
• integrated solar panels
  These are solar panels that also act as roofing materials. Please note that integrated solar panels on a new home are subject to the 21% rate. You can read more about this at the bottom of this page.

What does "on or near a property" mean?

An important condition for the 0% rate is that the panels are installed and delivered on or near a residence.

This includes:

• A garage or shed attached to a home, a conservatory and an addition or extension
• a garden at a residence
• a vacation home
• A home business, as long as the solar panels are also used privately
• An Owners Association purchasing solar panels for use on an apartment complex

What is covered by the 0% rate?

• the supply and installation of non-integrated solar panels
  These solar panels are the most commonly used. They are mounted on the roof or somewhere else near the house.
• the supply and installation of integrated solar panels
  These are panels that also act as roofing materials. Please note that integrated solar panels on a new home are subject to the 21% rate. You can read more about this at the bottom of this page.
• work and goods directly necessary for the installation and operation of the solar panels
  For example (the installation of) cables, a PV distributor, mounting materials and so-called optimizers and inverters. And also the adjustment of the meter box or the cutting of roof tiles for the purchase of the solar panels.
• disassembly followed by installation of the solar panels on another property
  For example, if the solar panels are taken with you when you move. Also, if the solar panels are temporarily disassembled, for example, because the underlying roof needs to be replaced, the 0% rate on disassembly applies. The same applies if the panels need to be replaced because they are broken or obsolete.
• so-called "Plug and play" solar panels, as long as they are installed on or near a home

What falls not under the 0% rate?

The following goods and services remain subject to the VAT rate of 21%:

• the supply and installation of non-integrated solar panels with multiple functions
  For example, PVT systems, solar collectors or solar panels in windows.
• the supply and installation of solar collectors that convert sunlight into heat
• the supply and installation of solar panels on a commercial building without a residential function
• the supply and installation of solar panels on public buildings and other buildings used for public interest activities
• A reinforcement of the roof for the installation of the solar panels
• cable routing
• the provision of a smart meter
• the supply and installation of a bird barrier or snow ramp
• goods not purchased specifically for the installation of solar panels
  For example, the delivery of a new inverter because the old inverter broke down. Or cables that are not delivered or installed in connection with the installation of solar panels.
• the supply and installation of a heat pump
• delivery and installation of a battery pack

Exception for integrated solar panels on new construction homes

Are you an installer or supplier of solar panels? You charge 0% VAT for the installation and supply of integrated solar panels on new-build homes. This is because you do not supply the new-build home (which is subject to 21% VAT), but you only install or supply the integrated solar panels on the home. And that is taxed at 0% VAT.

Are you delivering not only the integrated solar panels, but also the new home itself? Then the solar panels are included in the delivery of the house. So the installation and delivery of the solar panels are then taxed with 21% VAT, just like the house. Read more at Solar panel installers and suppliers.

Are you buying a new home? Then you will pay 21% VAT for your integrated solar panels. Because the integrated solar panels are part of the new construction home. Therefore, the 21% rate applies to the entire supply - including the integrated solar panels. Read more at I buy solar panels with 21% VAT.