Solar modules readied to gain from reduced VAT rates in EU

• Solar modules marketed in the European Union (EU) could be subject to lower value included tax (VAT) rates after an agreement was reached this week by finance ministers from throughout the bloc.

The European Council consented to update the rules on VAT rates to bring the tax's rules in line with EU priorities such as fighting the climate dilemma, while additionally giving governments with more flexibility on the rates they can use.

Complying with examinations between EU member states, they have determined to widen the current checklist of products and also solutions that can gain from minimized VAT rates to consist of, among other points, photovoltaic panels mounted on personal homes and also public structures.

" This is an early Christmas gift from the Council," Walburga Hemetsberger, CEO of profession organization SolarPower Europe (SPE), stated in a declaration sent out to PV Tech.

" As numerous Europeans experience this most recent gas-driven walk in energy rates, the reduced VAT rates for solar will certainly quickly make it a lot more economical for European homes and organizations to invest in solar as well as access clean and cheap electricity."

Together with solar modules, products such as green furnace and bicycles would benefit from reduced VAT rates. The checklist has actually likewise been upgraded to consist of digital solutions such as internet accessibility and also goods that safeguard public health.

Under the brand-new rules, EU participant states will continue to use a conventional rate of VAT over 15%. Nevertheless, they will certainly now additionally have the opportunity to apply 2 lowered rates as low as 5% to items as well as services in as much as 24 classifications.

The Council has actually additionally accepted phase out lowered VAT rates or exceptions on fossil fuels and also various other items with a comparable influence on greenhouse gas emissions by January 2030.

According to the European Commission (EC), current EU VAT rules are almost 30 years old and remained in urgent requirement of modernisation.

The upgraded rules will certainly now be sent to the European Parliament for its consultation on the last text by March 2022.

Earlier this year, the EC unveiled a brand-new ambition for the EU to raise the share of renewable resource to 40% of last consumption by 2030, up from a previous target of 32%. SPE forecasts that attaining that goal will need an overall of 660GW of solar PV deployed throughout Europe.