As an entrepreneur, let yourself solar panels, a solar carport or battery storage install on a business property or car park? Then you pay the standard VAT rate of 21%. In many cases, you can fully reclaim via your VAT return.
Here we explain how it works, when it applies and what you can expect from Shift to Solar.
21% VAT for business installations
The 0% VAT regulation which applies to private homes, does not apply to business installations. If you install solar panels on a:
- Commercial property
- Solar carport
- Loading plaza
- Solar bicycle parking
- Land without a residential function
Then the 21% VAT rate on the purchase and installation of:
- Solar panels
- Inverters and mounting materials
- Batteries for energy storage
- Charging infrastructure
- Engineering and installation costs
Reclaiming VAT via the tax return
If your company is subject to VAT, then in most cases you can reclaim this VAT in full via your regular VAT return. That means you can later offset the VAT you pay to Shift to Solar against your tax return to the tax authorities.
VAT on batteries, charging stations and installation work is also recoverable, provided it is demonstrably related to your business solar project.
Conditions for claiming back VAT:
- Your company is registered with the Chamber of Commerce
- You are liable to declare VAT
- The investment is used for business purposes
- The invoice complies with VAT rules (which we apply by default)
At Shift to Solar, we take this into account from the very beginning - for example, our invoicing is fully compatible with your records.
Beware of mixed situations
Sometimes a solar installation is placed on a property that has both a business and a private function (e.g. a company residence or a mixed-use building). In that case, the 21% rate still applies, but your right to VAT deduction may be shared proportionally. Our advisers will be happy to help you with this.
Why choose Shift to Solar's solar solutions?
Business solar projects involve more than just technology. You also want your investment to be financially sound - and the VAT administration to run smoothly. We take care of that for you, from quotation to VAT accounting.
What you can expect from us:
- Clear quotations and invoices compliant with VAT rules
- Advice on VAT reclaim and tax optimisation
- Projects from 15 kWp to hundreds of kWp
- Combination solutions with batteries and charging infrastructure
- Certified installation in accordance with VCA and NEN
- Guidance on grid connection, permits and subsidies
We make sure you get maximum business benefit - technically and fiscally.
Need advice?
Want to know how VAT works for your solar project? Or do you have questions about the combination with schemes such as EIA or KIA?
Schedule a free consultation or request an offer directly.
We make sure everything is right - on your roof and on your balance sheet.
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