As of 1 January 2023, a zero VAT rate was introduced for solar panels supply and installation near homes. The number of registrations from solar panel owners in the Small Business Scheme has significantly decreased since then. In 2023, there were 70,839 registrations compared to 355,434 in 2022, including those who applied for a VAT refund. Only 1057 applications have been received in 2024 so far. The decrease in registrations reduces the tax burden, but it also leads to extra implementation costs and complexity for the Tax and Customs Administration. The zero rate is expected to incentivize investments in solar panels, but its effects and budgetary importance cannot be accurately quantified with the available data.
Source Taxlive
