Claiming back the VAT on your solar panel system

Claiming back the VAT on your solar panel system

What steps do you need to take in order to receive the 21% tax you paid on the installation?

Claiming back VAT on your solar energy system

Owners of solar panel installations can claim the VAT on the purchase of their system back from the Tax Office. Zonnefabriek is happy to assist you in the steps you need to take.

btw teruggave zonnepanelen

Individuals who have a solar system installed can claim the 21% VAT (Value Added Tax) that they paid over the cost of the installation , back from the Tax Office.  

Decision by the European Court of Justice 

btw teruggave zonnepanelen

After a decision by the European Court of Justice there was some uncertainty over whether the Dutch Tax Office should consider owners of solar panel systems that are connected to the grid as business owners. If so, then it should be possible to reclaim the VAT paid over the initial purchase. In a reaction the Tax Office has published a question-and-answer document (in Dutch) which clarifies the rules about VAT for owners of solar panels. 

Administrative burden

In order to be able to claim the VAT back, owners of solar energy systems must register as small businesses with the Tax Office. That's because the electricity that is fed into the grid is in principle being 'sold' to power companies; as a solar panel owner you are therefore a power supplier.

So: you'll need to register as a small business with the Tax Office. As soon as you have received authorisation to claim back the VAT, you can then make use of the KleinOndernemersRegeling (Small Business Regulation), which implies that you will be relieved of the administrative burden for the following years. That's why it makes sense to organize everything before the beginning of the next fiscal year (1st of january) : You can be relieved of your administrative duty before the next year begins. If you want to take care of claiming the VAT yourself, you'll find the steps you need to follow below. 

Since many people don't particularly enjoy the administrative fuss that claiming the VAT can entail, Zonnefabriek offers a service that will take care of the claim for you. Ask our consultants what claiming the VAT back can mean for you.

Do you have to do anything?

No, fortunately you're not obligated to take action. There are two ways of avoiding the administrative work:

Option 1: You don't do anything
If you don't register as a small business but still 'sell' your power to the power company, you will not be penalized. So if you don't register, nothing will happen. However that also means you won't get your VAT back from the Tax Office.

Option 2: You ask for dispensation as a 'small business' 
Business owners who owe the tax office less than €1.883,= per year - when feeding solar power into the grid the amount is at most 100 euro a year -, can use the KleineOndernemersRegeling (Small Business Regulation). This means you get dispensation from the duty of filing a tax return or paying VAT. The advantage of making use of this regulation is that you are considered a business and that you can claim the VAT on the purchase of the system back. As soon as you receive the VAT back you can ask for the dispensation and be relieved of any further obligations for the coming years. 

Zonnefabriek takes care of everything

If you wish to make use of the advantages of registering as a business, then you will have to undertake some administrative steps in the first year after making the purchase. Many people don't want to do this. That's why we can offer to help you. We will register you as a business , organize that the VAT gets paid back to you and ask for the dispensation of further duties according to the Small Business regulation.
In order to do this we have an agreement with a VAT specialist. If you want to use their service you will be charged a one time payment of  €100,- excluding VAT. Then we'll get to work and you'll get the VAT on your system back!

Prefer to do it yourself?

Here is a description of the steps you'll need to take:

1. Download the form from the Tax Office website (in Dutch: de Belastingdienst) and fill it in. N.B.: the starting date for the business must be before the billing date of the first invoice.
2. The Tax Office will send you confirmation.
3. You'll receive a tax return form from the Tax Office that states you need to declare your taxes every quarter.
4. You fill out the first VAT return form, in which you claim the purchase of the solar panel system as pre-tax.
5. This pre-tax is returned to you.
6. In the second year you request dispensation from your administrative duties on the basis of the Small Business Regulation.
7. Now you will no longer have to declare VAT Tax returns.