No reduced VAT rate for installing balcony glazing

• The Dutch Turnover Tax Knowledge Group has ruled that the installation of balcony glazing does not qualify for a reduced VAT rate.
• This is because, according to parliamentary history and official decisions, the reduced VAT rate for insulation applies only to work primarily aimed at energy efficiency.
• The Knowledge Group concluded that balcony glazing primarily serves to expand living space, and its incidental insulating effect, or the fact that it’s a construction component rather than insulation material, does not justify the reduced rate.

Source BTW Jurisprudentie

---

Balcony Glazing Installation Not Considered Energy-Saving Insulation Under Dutch VAT Law

• Installing balcony glazing does not qualify as the application of energy-saving insulation material to floors, walls, or roofs under Dutch VAT law (Wet OB 1968, Tabel I, post b.19).
• The primary purpose of balcony glazing is not to make the home more energy-efficient.
• Only materials specifically intended to improve energy efficiency, such as glass wool or stone wool, qualify for the reduced VAT rate.
• Construction elements like windows and doors, including balcony glazing, are considered normal parts of a home and not insulation material.
• The reduced VAT rate does not apply to the installation of balcony glazing.

Source: kennisgroepen.belastingdienst.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.

---

---