Solar VAT Rates in Europe 2026: 9 Countries Compared

Solar VAT in the nine European countries covered here runs from 0% to 23%. The rate you put on a quote depends on the building type, the system size and how the contract is written. Last updated: November 2026.

Value-added tax (VAT) is the sales tax you add to an invoice. A zero rate means the invoice shows VAT at 0%. Also see: Germany solar subsidies and France solar feed-in tariffs.

Solar VAT Rates by Country: Comparison Table

Other European countries are not in this table. We have not checked their rates against the national tax authority, so this page does not state them. Check with the tax authority of the country where the roof is.

What Does EU Law Say About Solar VAT?

The EU lets each country choose its own solar VAT rate. Council Directive (EU) 2022/542, dated 5 April 2022, added a new point to Annex III of the VAT Directive. Point (10c) reads: “supply and installation of solar panels on and adjacent to private dwellings, housing and public and other buildings used for activities in the public interest”.

Solar panels are one of the items a country may tax below the usual 5% minimum. The directive text says a country can use a reduced rate under 5%, or an exemption with the right to deduct input VAT. Input VAT is the VAT you pay on your own purchases.

The directive does not force any country to cut its rate. It sets no 31 March 2027 end date for solar. The only 2027 date in this guide is the UK’s, and the UK has its own law.

Which Countries Have 0% VAT on Solar Panels?

Germany, the Netherlands, Ireland and Croatia have a 0% rate for homes. The UK has one until 31 March 2027. The rules differ in each country.

Germany

Germany applies 0% under § 12 (3) of its VAT law (UStG). It covers solar modules, the parts needed to run the plant, and storage that holds the solar power. The installation is covered too. The plant must be on or near a home, a flat or a public-interest building.

The law treats this as met if the plant has no more than 30 kW(peak) of gross output in the German market master data register. Above 30 kW(peak), a plant can still qualify if you can show it sits on or near such a building. So 30 kW(peak) is a simple test, not a hard limit.

Netherlands

The Belastingdienst says solar panels on or at a home carry 0% VAT. That includes a garage, shed, conservatory or extension next to the home. Panels on a business premises without a home pay 21%. So do panels on public buildings and other buildings used for activities in the public interest.

Integrated panels (panels that also work as the roof covering) on a new-build home pay 21% when the buyer gets them as part of the new home. An installer who only supplies and installs the integrated panels charges 0%.

Ireland

Ireland applies 0% to the supply and installation of solar panels on or next to a private dwelling. The same business must supply and install, in one contract. Ancillary equipment such as wiring, a controller, a combiner box and batteries is covered if it is in the same contract.

Without a supply-and-install contract, the standard rate applies to the panels. A reduced rate may apply to a separate installation contract, under the two-thirds rule. The manual says the zero rate does not apply to commercial, industrial, public or farm buildings, hotels or short-stay holiday homes.

Croatia

Croatia applies 0% to panels on private homes, housing and public-interest buildings. The tax agency says it covers the inverter, an optional battery, the mounting and cabling, and design and permit work. The building must be used mostly (over 50%) for housing or for public-interest activity.

United Kingdom

The UK gov.uk VAT Notice 708/6 covers supplies from 1 May 2023 to 31 March 2027. Installing solar panels in homes and charity buildings is zero-rated in that period. From 1 April 2027, the notice says the reduced rate of 5% applies again.

A battery fitted later to a home with solar is also zero-rated, from 1 February 2024. A battery fitted as part of the solar install is normally part of the same zero-rated supply.

What About Reduced-Rate and Standard-Rate Countries?

France: 5.5% From 1 October 2025

France charges 5.5% on the supply and install of solar equipment in homes, up to 9 kWc. The tax doctrine (BOFiP) lists these tests for the modules:

• Carbon footprint below 530 kgCO2eq per kWc
• Silver in the cells below 14 mg per watt
• Lead below 0.1% and cadmium below 0.01%

The kit must also have an energy manager. This is a system that reads production and use in real time and steers use to the site. The 9 kWc test applies to each delivery or installation job. Panels added to an older system can qualify even if the home then has more than 9 kWc in total.

A battery does not get 5.5%. In the BOFiP example, a panel and battery sold together as one job are taxed at the normal rate of 20% for the whole job. Check how your invoice splits the work before you quote.

BOFiP also gives a transition. Some jobs keep the old 10% rate. The job needs a dated quote that both sides accepted. It also needs a deposit or a finance offer before 1 January 2026. The work can be done later.

Italy: 10%

The Italian tax agency says a 10% rate applies to photovoltaic plants. The rule is item 127-quinquies of Table A, Part III, of DPR 633/1972. It also covers finished parts bought to build the plant (item 127-sexies). Building contracts for the plant are covered too (item 127-septies). The circular is from 2013. For parts, the buyer must give a signed statement that they are for building a plant.

Austria: 0% Ended 31 March 2025

Austria had 0% from 1 January 2024 for systems up to 35 kW(peak) on or near certain buildings. The BMF says it ended on 31 March 2025. Contracts signed before 7 March 2025 kept 0% until 31 December 2025. The normal rate is 20%.

Portugal: 6% Ended 30 June 2025 (Press Report)

A trade press report of 12 June 2025 says Portugal’s 6% rate on solar panels ended on 30 June 2025, with no new law. It says the tax authority confirmed this. The normal rate of 23% applies from 1 July 2025. We have not checked for any change since then.

How Much VAT Does a Solar System Carry? Worked Example

This example uses a net price of €10,000 for panels and installation, with no battery. VAT is the net price times the rate. These are example numbers, not quotes.

Check: 10,000 x 0.055 = 550. 10,000 x 0.10 = 1,000. 10,000 x 0.20 = 2,000. 10,000 x 0.23 = 2,300.

What About VAT on Commercial Solar Installations?

The 0% and reduced rates in this guide are mostly for homes, and in some countries for public-interest buildings. Business buildings are treated differently in each country.

• Netherlands: panels on a business premises without a home, or on a public-interest building, pay 21%.
• Ireland: the zero rate does not apply to commercial, industrial, public or farm buildings.
• France: the 5.5% rate is for panels in homes (“dans les logements”).
• Germany: a plant above 30 kW(peak) can still get 0% if it is on or near a home, flat or public-interest building.

Check the building type before you quote a zero or reduced rate.

Zero Rate Versus Exempt: Why It Matters

With a zero rate, the invoice shows VAT at 0%. The directive allows a reduced rate or an “exemption with deductibility of the VAT paid at the preceding stage”. That wording means the seller keeps the right to deduct input VAT. Ask your tax adviser how this works in your country before you issue invoices.

Is There a 2027 Deadline for Zero VAT on Solar?

Not in EU law. Directive 2022/542 has no 31 March 2027 end date for solar. The UK does have a 2027 date. Its zero rate ends on 31 March 2027, and 5% applies from 1 April 2027 (VAT Notice 708/6). For Germany, the Netherlands, Ireland and Croatia, the sources above show no end date. A national government can still change its own law at any time.

For payback with VAT in the numbers, use the generation and financial tool, or book a guided demo to see it on a real project. For more on incentives, see the European solar tax credits guide and the Europe solar compliance pillar.

Checklist for Installers

• Check the building type: home, flat, public-interest building or business.
• Check the size limit where one exists: 9 kWc in France, 30 kW(peak) in Germany.
• Keep proof of the address and the building type for each job. Some countries ask for it.
• In Ireland, put supply and install in one contract.
• In France, check the module carbon, silver, lead and cadmium limits and the energy manager. A job that includes a battery as one operation pays the normal rate.
• In the UK, note the 31 March 2027 end date on quotes.

Frequently Asked Questions

Which European countries have 0% VAT on solar panels?

Germany, the Netherlands, Ireland and Croatia apply 0% VAT to solar panels on homes. The UK also applies 0% until 31 March 2027. Each country has its own rules. Germany treats plants up to 30 kW(peak) as qualifying. Ireland needs one supply-and-install contract. The Netherlands excludes business premises.

Does Germany charge VAT on solar panels?

For qualifying plants, no. Section 12 (3) of the German VAT law sets 0% on solar modules, key parts, storage and installation on or near homes, flats and public-interest buildings. The law treats a plant of up to 30 kW(peak) as qualifying. The rate has applied since 1 January 2023, and the law text has no end date.

Is there VAT on solar panels in the UK?

Installing solar panels in homes and charity buildings is zero-rated from 1 May 2023 to 31 March 2027, under VAT Notice 708/6. From 1 April 2027, the notice says the 5% reduced rate applies. A battery fitted later to a home with solar is zero-rated too.

Is there a 2027 deadline for zero VAT on solar?

Not in EU law. Directive 2022/542 sets no 31 March 2027 end date for solar. The UK’s zero rate does end on 31 March 2027, and 5% applies from 1 April 2027.

What happened to Austria’s zero VAT rate on solar?

Austria’s 0% rate for systems up to 35 kW(peak) ran from 1 January 2024. The BMF says it ended on 31 March 2025. Contracts signed before 7 March 2025 kept 0% until 31 December 2025. The normal rate is 20%.

What is the VAT on solar panels in France?

France charges 5.5% from 1 October 2025 on the supply and install of solar equipment in homes, up to 9 kWc, if the kit meets the module limits and has an energy manager. A panel and battery sold together as one job pay the normal rate of 20% for the whole job (BOFiP example).

Do businesses pay VAT on commercial solar installations?

In most of the countries in this guide, the zero or reduced rate is for homes, and in some also for public-interest buildings. In the Netherlands, a business premises or public-interest building pays 21%. In Ireland, commercial buildings do not get the zero rate. In Germany, a plant above 30 kW(peak) can still get 0% if it is on or near a qualifying building.