How to reclaim VAT on solar panels
Have you recently purchased solar panels for your home? Then we have good news! In the Netherlands, you can reclaim the VAT you paid on the price and installation of your solar panels. You are currently seen as an entrepreneur for VAT purposes because you sell a product to someone else. When you have solar panels, you ‘sell’ electrical power to the energy supplier. The compensation you receive for this is the amount that is deducted from your electricity bill.
How does the VAT return for solar panels work?
If you have invested in solar panels and want to be entitled to the 21% VAT refund, you must register as an entrepreneur. You do this by sending a declaration of solar panel holders’ (in Dutch: formulier ‘Opgaaf zonnepaneelhouders’) to the Dutch tax authorities. By doing this, you receive your VAT number, which you need in order to submit the VAT return.
In the same form, you can indicate whether you want to participate in the Small Businesses Scheme (In Dutch: Kleineondernemersregeling, KOR). Most individuals opt for this because, in this case, you only file a VAT return once, where you reclaim the VAT paid on your solar panels. You can also choose not to participate in the KOR. Please note that you must submit and pay a VAT return every quarter.
In the VAT return, you state how much VAT you have paid (21% on the purchase and installation of your solar panels) and how much VAT you have received from the energy supplier. The last one is difficult to calculate, and, therefore, the Dutch tax authorities estimate this based on the capacity of your solar panels. So the higher the capacity, the higher the amount of VAT you receive.
Help with your VAT return on solar panels
Do you not feel like doing the administration, or could you use some help with the VAT return on your solar panels? We can help you with this. Feel free to contact us using the details below.