Revenue eBrief No.105/23

VAT treatment of the supply and installation of solar panels

A new Tax and Duty Manual has been published to provide guidance on the new zero VAT rate for the Supply and installation of solar panels.

Extract:

1 Private dwellings

From 1 May 2023, the zero rate will apply to the supply and installation of solar panels on or adjacent to immoveable goods, being private dwellings. Previously, the reduced rate applied where the solar panels did not exceed two-thirds of the total value of the supply.

Solar panels includes photovoltaic panels, solar windows, and solar walls.

The term ‘on or adjacent’ allows that the solar panels can be fitted onto the private dwelling (e.g. to the roof) or ground mounted beside it.

Private dwellings includes:
* houses (including a domestic residence on a farm)
* apartments
* duplexes
* other types of private dwellings such as caravans and mobile homes that are attached to the ground in a way that effectively makes them immobilised.

The zero rate does not apply where the building is not a private dwelling such as a:
* commercial building
* industrial building
* public building
* retail shop
* farm building
* hotel
* B&Bs3
* guest houses used for short term-accommodation
* holiday home used for short term-accommodation