VAT treatment of the supply and installation of solar panels
Revenue have now issued guidance on the VAT Treatment of the supply and installation of solar panels.
The supply of solar panels is subject to the standard rate of VAT. However, the reduced rate or zero rate may apply when solar panels are supplied and installed as part of a supply and install contract.
From 1 May 2023, the zero rate will apply to the supply and installation of solar panels on or adjacent to immoveable goods, being private dwellings. Previously, the reduced rate applied where the solar panels did not exceed two-thirds of the total value of the supply.
The zero rate does not apply where the building is not a private dwelling such as a:
- commercial building
- industrial building
- public building
- retail shop
- guest houses used for short term-accommodation
- holiday home used for short term-accommodation.
Whilst every effort has been made to ensure the accuracy of matters covered by this article, no responsibility for loss or damage occasioned by any person acting, or refraining from acting, as a result of matters above. Professional advice should always be sought before acting on any interpretation of matters covered by this article.
28 April 2023