No VAT for private individuals who resell solar power

Minister of Finance Vincent Van Peteghem makes it fiscally simple for private individuals to sell surplus solar power to companies with a small-scale solar panel installation. The Minister clarifies that such resales are not an economic activity and therefore no VAT should be charged.

“Several thousand families in our country already generate solar power with a small-scale solar panel installation. By now offering them the opportunity to sell on VAT-free surplus electricity to companies, we not only increase the efficiency of the installations, but we also hope to encourage others to invest in sustainable energy. ”

Vincent Van Peteghem, Minister of Finance

The resale of surplus solar power by private individuals to companies came to the fore at the end of January when sports chain Decathlon announced such an initiative. Minister of Finance Vincent Van Peteghem then asked the FPS Finance for clarification about possible consequences with regard to VAT for such resales.

That clarity is now there. When private individuals with a small solar installation (less than or equal to 10 kilovoltampere) resell surplus solar power to companies, this is not an economic activity, given the small amount of power that is sold. The private individual must therefore not issue invoices and not charge VAT. The conditions are that the private individual does not carry out any other economic activity for which he is liable for tax and that he has a double meter (including the digital meter).

Incidentally, the non-application of VAT applies both to reimbursements in the form of a sum of money and in the form of a consideration, such as a voucher.