VAT for Solar Panel Installation in Residential Properties: Rates and Corrective Procedures

• Companies installing solar panels in homes can apply a 10% VAT rate if they meet the requirements.
• The person inquiring wants to know the applicable VAT rate and what to do if a different rate has been applied.
• The tax rate for renovations and repairs in a private home is considered to be 10% if certain conditions are met.
• The person carrying out the works should not provide materials or, if they do, the cost should not exceed 40% of the taxable base.
• The recipient of the works should provide a written declaration confirming that they are not acting as a business, using the home for personal use, and that the construction or renovation of the home was completed at least two years before the start of the works.
• The cost of materials provided for renovations or repairs should include all necessary materials, including subcontracted work.
• If the works meet the criteria for renovations and repairs and the material cost does not exceed 40%, a reduced VAT rate of 10% applies. Otherwise, the general rate of 21% applies.
• If a different rate has been applied incorrectly, the taxpayer should rectify the incorrectly determined tax amounts.

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---