Sales tax on solar panels may be scrapped all together

At the start of next year, people may be able to have solar panels installed on the roof of their homes with significantly less burden. Instead of reclaiming the value added tax for the purchase of the panels, the government is considering scrapping the tax on solar panels entirely. This would also save the tax authorities quite a bit of hassle, according to the Cabinet.

European Union Member States recently adopted a new European directive for VAT rates. As a result, the Cabinet can start working towards implementing the zero-percent rate on the solar panels.

An internet consultation shows that the government wants to amend the law, "subject to budgetary feasibility, the results of the internet consultation and the implementation test.” The new rule would apply from January 1, 2023. Stakeholders can respond to the proposal until May 20.

State Secretary Marnix van Rij said last month that the Cabinet was working on this proposal, but still had to wait for consultations with other European member states. Currently, people can reclaim VAT already paid on the purchase and installation of solar panels, provided they meet certain conditions.