Newsroom, VAT | 30. November 2022

Netherlands plans to abolish VAT on solar panels from 1 January 2023

The Dutch Tax Plan 2023 foresees a cancellation of VAT for photovoltaic systems used by private households. by

NLD Zero on private solar systems
NLD Zero on private solar systems

The Dutch government wants to abolish VAT altogether for photovoltaic systems from 2023. This applies to all systems that supply private households, such as rooftop PV systems. However, building-integrated photovoltaic (Bipv) systems are excluded from the plan.

The current VAT rate is 21 per cent. The reduction would significantly reduce the purchase costs for private households. The government has been promoting photovoltaic systems’ installation on roofs for some time.

Pending approval from parliament

The sales tax cut is to become part of the 2023 tax plan but must first be approved by the Generaalstaten. Throughout the European Union, levying a national turnover tax is mandatory, but the Dutch government has lobbied hard in the European Commission to allow tax exemptions.

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