Private owners of solar panels can be VAT entrepreneurs

By supplying electricity to your energy supplier through solar panels you can be classed as an entrepreneur for VAT purposes. That sounds more complicated than it is, but it is good to know what you are getting into.

1. When are you liable for VAT?

As a private owner of solar panels you are liable for VAT if you supply the electricity generated, wholly or partly, to your energy supplier for payment. Normal VAT rules apply to the right to deduct VAT.

2. What does that mean in practice?

As a VAT entrepreneur you have to keep records and send invoices for your supplies showing the VAT. It is also possible to be exempted entirely from these administrative obligations, after which you no longer have the right to deduct. Which choice works out best depends on the size of your system.

• Supplying for payment makes you liable for VAT
• Normal VAT rules apply to deduction
• Exemption from the paperwork is possible
• Check your situation with the tax authorities

3. Check with the tax authorities

This article is meant as an explanation, not as tax advice. The rules change regularly, so for your own situation always check the tax authority's website or ask your accountant. We are happy to help with the technical side: the design, installation and monitoring of your solar system.

In practice this subject belongs with monitoring and maintenance and heat pumps. There you can read how we work and what is possible, or you can request a no-obligation quote straight away.

Further reading: what do solar panels cost?, what do solar water heaters cost?, what do heat pumps cost?.

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