- Luxembourg Circular No. 814 (June 1, 2026) clarifies VAT rules for grid-connected photovoltaic installations, treating them as immovable property.
- Operators selling all electricity to the grid are taxable persons, benefit from reduced VAT rates, and may fully deduct input VAT on installation and maintenance.
- Operators using all electricity privately are not taxable persons, have no VAT registration/filing duties, and cannot reclaim input VAT.
- Operators who self-consume part and sell the surplus may deduct input VAT but must account for self-consumed electricity as a taxable self-supply at a reduced rate.
- Businesses with annual turnover of EUR 50,000 or less may use the small business franchise scheme, avoiding periodic VAT returns but also losing input VAT deduction rights.
Source: marosavat.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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