Dáil Éireann Debate, Monday - 11 September 2023
428. Deputy Francis Noel Duffy asked the Minister for Finance if retrospective payments will be considered for households who have installed solar panels before 1 May when 0% VAT applies; and if he will make a statement on the matter. [37398/23]
View answerThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. From 1 May 2023, and in accordance with the Directive and Irish legislation, the supply and installation of solar panels on or adjacent to immovable property, being private dwellings, is subject to the zero rate of VAT. For the zero rate to apply, both the supply of the solar panels and their installation must be the responsibility of the same business in the same supply (i.e. a supply and install contract).
In accordance with EU and Irish VAT legislation, a VAT-registered trader is obliged to include VAT as part of the price for goods and services that the trader supplies. Goods or services which are supplied to unregistered persons or private individuals prior to the date of a change in a VAT rate are taxable at the VAT rate in force at the time when they are supplied. There is no provision in the Directive to permit individuals acting in their private capacity to reclaim VAT incurred on their purchases.
The zero rate of VAT for solar panels can only operate from 1 May 2023. I have no discretion to apply this measure on a retrospective basis.
