Solar energy in Luxembourg: A reduction in VAT, “not before January 1, 2023 at the earliest”
Posted
Solar energy in LuxembourgA reduction in VAT, “not before January 1, 2023 at the earliest”
LUXEMBOURG – The Minister of Finance has indicated that the reduction in the VAT rate on photovoltaic installations will take place only in a few months.
Better to wait a little longer: while many residents are wondering about ways to save energy, Yuriko Backes indicated that a reduced rate of VAT (from 17 to 3%) on photovoltaic installations should not intervene “before January 1, 2023, at the earliest”. The Minister of Finance was answering a parliamentary question from MP Pirate Marc Goergen.
“Without retroactive application,” said the minister. Retroactivity “would entail an extremely high administrative burden for the administration”, she explained. Thus, if an account has already been paid, the rate of 17% has been applied and remains applied. If the installation is delivered and installed after the entry into force of the new rate, the customer only pays 3% VAT on the sale of the invoice.
The country’s photovoltaic power plants produced 40.1 GWh last July, double that of July 2021. A “historic record” – welcomed the government – due to strong sunshine and a 6% growth in the number of installations over one year (from 8,653 to 9,167). A significant investment at the start, amortized over several years.
(Mc)