The introduction of the new small business scheme as of 1 January 2020 has made the VAT rules for owners of solar panels more complex. After a letter and a consultation with the Home Owners Association, the State Secretary announced relaxations.
From January 1, 2020, owners of solar panels who supply electricity back to their energy company are obliged to register as a VAT entrepreneur with the Tax Authorities. After registration, the holder of solar panels will receive a turnover tax return form from the tax authorities. In this declaration, the owner of the solar panels can reclaim the VAT charged. However, he must declare a fixed yield from his solar panels as turnover. Does the solar panel holder only want to file a turnover tax return once? Then he must make the choice for the small business scheme (KOR) on the application form and send it to the tax authorities no later than four weeks before the end of the year. Will someone purchase solar panels in the period 3 December to 1 January? In that case, he can never invoke the Small Business Scheme in time and he must submit turnover tax returns at least twice.
Source Taxence
