Are solar panels taxable in the Netherlands?

Any supply of energy to the end-user and the usage of energy in the Netherlands is generally subject to Dutch energy tax. This implies that the owner of solar panels which supplies energy generated with the solar panels to its tenant would be required to register for energy tax purposes.

Are solar panels a good investment in the Netherlands?

There has been a significant increase in solar panels investments on the rooftop of buildings in the Netherlands. The challenge is to structure in such a way that parties can benefit both from the SDE++ subsidy and energy tax exemption.

Will Dutch government reduce VAT on solar panels?

The Dutch government is planning to reduce the value-added tax (VAT) applied to PV systems used in residential applications from 21 to 0%. “The measure will be part of the Tax Plan 2023 package and still needs final parliamentary approval,” Dutch solar analyst Peter Segaar told pv magazine.

Are solar PV projects tax deductible in the Netherlands?

Income derived by a taxpayer with a solar PV project located in the Netherlands is in principle subject to Dutch income tax. The underlying tax base can, however, be lowered due to certain tax allowances. The Netherlands provides for general tax allowances that stimulate investing opportunities.

How do I reclaim VAT on solar panels?

Reclaim the 21% VAT you have paid on the purchase and installation of solar panels from the Dutch Tax Administration (Belastingdienst). Your legal business structure determines how to go about reclaiming the VAT. The KIA allows you to deduct part of your investment in solar panels from your profit, and pay less income tax.

How much electricity is taxable in the Netherlands?

The general income cap is 130 euros per MWh. Installations from 1 megawatt (MW) upwards are taxable, thus the bill affects an estimated 1,500 installations. For the Netherlands, this includes electricity generated in the Netherlands and in the Dutch exclusive economic zone from wind, solar, hydropower, biomass, biogas, waste and nuclear energy.