Replacing Thermal Panels due to Damage: VAT Considerations

• The consultee is going to replace thermal panels in their home due to a malfunction.
• They may be eligible for a 10% VAT rate and can apply the deduction for energy efficiency improvements in the personal income tax.
• To apply the reduced VAT rate, the works must be considered repairs and renovations, with material costs not exceeding 40%.
• If not, the general tax rate of 21% will apply.
• The consultee can apply the deduction for energy efficiency improvements in their home for the personal income tax.
• The deduction requires a minimum 30% reduction in non-renewable primary energy consumption or an improvement in the energy rating of the building to class “A” or “B”.
• A certificate of energy efficiency must be obtained before the start of the works, valid for up to two years.

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.

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