The provision for the super-reduced rate limits its application based on the type of building equipped with solar panels. It applies to private residences, housing, and public or other buildings used for activities of general interest, as well as those in close proximity to such buildings.
For “private housing”, this refers to buildings of which at least three quarters of the total surface area is dedicated for residential purposes. The same rule applies to housing, public buildings, and other structures used for activities of general interest: at least 75% of the total surface area must be reserved for these specific uses.
A definition of this is provided in the amending regulation "Règlement grand-ducal du 23 décembre 2022": 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […], and the following explication is provided by bulletin No 816 issued by the Registration Duties, Estates and VAT Authority: “private housing and buildings used by public authorities not subject to tax for activities carried out as such or used by those subject to tax for activities of general interest exempt from VAT without the right to deduct input tax (notably hospitals, schools, children’s nurseries, youth hostels and retirement homes)”. The provision of cultural services have been added to the latest list.
The delivery and installation of photovoltaic solar panels near the types of housing or buildings mentioned above still qualify for the super-reduced 3% VAT rate, provided they are installed on adjoining or nearby properties. These properties must be close to private residences, housing, or public buildings used for activities of general interest, and the solar panels must be connected to the thermal and/or electrical network of the relevant housing or buildings.
