VAT could be removed in an amendment to the Finance Bill, which is currently before the Dáil
The government should ‘green’ our VAT rates and remove VAT from solar panels and their installation, according to Social Democrats Climate Spokesperson Jennifer Whitmore.
“Earlier this year, the EU clarified that a zero VAT rating can apply to solar panels and their installation. Energy efficient goods and services can also be given preferential treatment under the VAT system.
“As it stands, the government provides a grant of €2,400 to households for solar panels. However, a large portion of this is consumed with the cost of VAT – so the government is giving households money with one hand and taking it away with the other. If VAT were removed, costs would decrease significantly.
“The Dáil is currently debating the Finance Bill, which will give effect to an array of budgetary measures when it is enacted. I was unable to propose an amendment to remove VAT for solar panels, given tax is a government prerogative, but the Minister for Finance could easily could so.