Solar panel holders supply power to the grid. They receive compensation for this of the energy company. On the basis of the Fuchs judgment of the European Court of Justice (20 June 2013, no. C-219/12), they will then qualify as a VAT taxable person. This means
that they owe VAT on the compensation they receive for the electricity supplied.
Previously, only private solar panel owners could remain outside this VAT obligation. because the Small Entrepreneurs Scheme (“KOR”) was reserved for natural persons. Since 1 January 2020, the new KOR also applies to legal entities such as schools. Schools can
apply the KOR as the taxed turnover (excluding exempted or untaxed educational turnover) to annual base does not exceed € 20,000. Schools that are only involved in VAT collection because of the taxed grid supplies, will generally remain below this limit and may sign up.
The school is then exempt from VAT and administrative obligations for the power supplies to the grid. On the other hand, when applying the KOR, the school is not entitled to deduct has preload. As with private solar panel holders, it is possible, for the year to pay VAT on the purchase and to file a tax return and only then to apply the KOR. The school will then be entitled to deduct the VAT on the purchase of the solar panels to the extent that they are used for VAT-taxed power supplies to the grid. A transition to the KOR during the four years following the year of purchase may lead to a review (i.e. a reimbursement) of the previous deduction.
The revision at the end of each of these years is payable on an annual basis amounts to 1/5 of the initial deduction, but does not apply if this is amount remains below the revision threshold of €500. If this threshold is exceeded, which can occur with a large investment in many solar panels, can be chosen to reduce the KOR only apply from the fifth year after the year of purchase.
For schools that meet the requirements of the scheme, the new KOR offers, from 2020 onwards, an possibility of exemption as explained in the answer to question 3, which means that they do not charge VAT on have to pay for the supply of electricity and do not have to make a declaration. An exemption for the net deliveries by all schools are not possible. The Dutch OB Act is based on and subject to the European VAT Directive, which does not allow for this. As explained in the answer to question 4, such an exemption would, moreover, have the adverse effect of a Deduction for the VAT on the purchase cost of the solar panels