The zero rate for solar panels will not be expanded, according to State Secretary Van Rij of Finance. A study found that there is no need to extend the zero rate to include the supply and installation of solar panels on public and other buildings used for general interest activities. The implementation problem that applies to private solar panel holders does not apply to these public and other buildings. Additionally, the State Secretary believes that expanding the zero rate could lead to demarcation problems and effectiveness issues. The evaluation of reduced VAT rates also indicates that they are generally not effective for achieving intended goals and do not comply with the assessment framework for tax schemes.
Source Taxlive
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