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Energy tax on solar panels

The European Court of Justice’s “Fuchs ruling” has resulted in the private owners of solar panels who feed their unused electricity into the power grid for a consideration coming under the category of entrepreneurs for value-added tax purposes.

This makes them eligible for input tax deduction and for application of the small business scheme. The drop in tax revenue is to be offset by gradually reducing the fixed tax reduction for residential properties forming part of the energy tax scheme while abolishing it altogether for non-residential properties.

 

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