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5 min Reading time For several months now, there’s been no need to request a VAT refund on a solar power system—VAT simply isn’t charged on the installation at all. However, some uncertainty remained about specific components of the installation. After all, some items might not clearly be part of the solar panel setup. To clarify, the Dutch Tax Authorities have published a list.
It’s especially important to know what doesn’t fall under the 0% rate so that these items aren’t incorrectly priced. The list is quite extensive:
Fortunately, the vast majority of new installations do fall under the 0% VAT rule, making things much easier. The Dutch Tax Authorities specify:
At Zonnefabriek, we already apply the 0% VAT rate to our quotes, so you generally won’t see a 21% VAT charge unless items from the first list are included. However, the 0% VAT rule has required some adjustments for installation companies.
We still have to pay VAT on products we purchase from suppliers but only get it refunded later. Previously, this wasn’t an issue, as we received full VAT-inclusive payments from customers upfront. Now, some installation companies face cash flow challenges, as they must pre-finance VAT while waiting for a refund.
This has led some solar companies to increase down payments or require them immediately after signing the contract. Fortunately, Zonnefabriek maintains a strong financial position, so we haven’t had to change our process. You still pay 40% of the total amount no later than two weeks before installation, with the remaining balance due after completion.
