The Northern Netherlands District Court ruled that X cannot deduct input tax on the construction of a house on which non-integrated solar panels are installed.
X is having a house built in 2017 and installing non-integrated solar panels on the roof. According to X, this means that the house partly fulfills a business function. X submits a turnover tax supplement for the 2018 period and reclaims part of the input tax on the construction of the house. The inspector states that the construction costs are not directly and immediately related to the taxed act and does not grant a refund. X appeals.
The Northern Netherlands Court ruled that X would also have incurred the costs for the house if X had not installed solar panels. The costs of construction are not exclusively incurred for generating and supplying energy through solar panels. The inspector is right not to issue a refund. The fact that the solar panels were necessary to meet an EPC standard does not change this. The appeal is unfounded.
Source Taxlive.nl
