Partial VAT Deduction for Home Construction with Integrated Solar Panels Based on Actual Use

• A-G Ettema believes VAT deduction for building costs of a house with integrated solar panels should be based on actual use of the entire property.
• X built a new house with solar panels and supplies unused electricity to the energy company, qualifying as a VAT entrepreneur.
• The court previously ruled that VAT on construction costs is not deductible, as the costs would have been incurred even without solar panels.
• A-G Ettema disagrees, stating the costs should not be split and the deduction should be calculated based on actual use.
• The recommendation is to uphold X’s appeal and refer the case back for calculation of the VAT deduction based on actual use.

Source: taxlive.nl

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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