Claiming VAT on Your Home Battery: Rules & Examples

The 0% VAT rule for solar panels and home batteries

Since 1 January 2023, the Dutch government applies 0% VAT on solar panels and home batteries. This means you pay no VAT on purchase — a saving of 21% on the total price.

The rule applies to: the battery itself, the inverter, installation materials, and labour costs. The condition: the system must be installed on or near a home with a residential function.

Claiming VAT back on your purchase

Most suppliers automatically apply the 0% rate. However, it is wise to check your invoice — especially with smaller or foreign suppliers, 21% VAT is sometimes still charged.

If you purchased your battery before the 0% rule (before 2023), or if your supplier still charged 21% VAT, you can claim this VAT back from the Tax Authority.

Scenario 1: You paid 0% VAT

You do this by registering as a VAT entrepreneur. This sounds more complicated than it is — for most home battery owners, it’s a one-time action.

Flat-rate method: the Tax Authority uses a fixed rate of €15 per kWh installed capacity per year as compensation. This is the amount you declare as turnover.

Calculation example: Claiming VAT on purchase

Below is a concrete example for a 20 kWh home battery purchased at 21% VAT:

In the first 5 years, you reclaim €1,041 in VAT and pay back 5 × €63 = €315. Net benefit: €726. After 5 years, you can return to the Small Business Scheme (KOR) and stop filing returns.

VAT on trading income

If you earn money through your home battery (e.g., through a dynamic energy contract), VAT may apply to that income.

Scenario 2: You paid 21% VAT

There are two viewpoints in tax practice:

Calculation example: VAT on income

In practice, most home battery owners fall under the KOR (turnover under €20,000) and pay no VAT on trading income. If in doubt, consult a tax advisor.

Below is a concrete example for €1,000 annual trading income:

Small Business Scheme: opt in or out?

The KOR (Small Business Scheme) exempts you from VAT obligations if your annual turnover is below €20,000. But is that always the best choice?

You can opt out of KOR to claim VAT on purchase. After 5 years, you can re-enter KOR. This is advantageous if you paid 21% VAT on a large purchase.

Step-by-step: Claiming VAT back

Below is a concrete example of the difference:

Common mistakes

Many home battery owners make avoidable mistakes when dealing with VAT. These are the most common ones:

In some situations, it is wise to consult a professional:

When to consult a tax advisor

Disclaimer: this article is for information purposes only and does not constitute tax advice. Tax rules may change. Always consult a qualified tax advisor for your personal situation.