FAQ

Yes, it is applied directly to the invoice. Please note that this is worth, under the terms of the grand-ducal regulation of 23 December 2022 amending: 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° […], not only for the photovoltaic (or hybrid) solar panels, but also for the thermal solar panels. “The thermal functioning solar panels installed after 31 December 2022” no longer come under the scope of application of the “housing VAT”.

The necessary explanations are provided by bulletin No 812 issued by the Registration Duties, Estates and VAT Authority. This bulletin deals with the temporary reduction of the different rates, but in the end, the reduction of VAT from 17 % to 3 % for the solar panels is to be considered alike.
By way of additional information, here are some examples below.

Deliveries of goods, other than new modes of transport, and provisions of services

There is reason to distinguish between deliveries and services performed in the B2B/B2G sector and those made in the B2C sector.

A. For deliveries of goods/provisions of services relating to B2B (Business to Business, i.e. the customer is subject to VAT) and B2G (Business to Government, i.e. the customer is a legal person not subject to VAT), there is an obligation to issue an invoice for the delivery / service performed as well as for the instalment payments.

Attention: the customer to whom the work is invoiced that can benefit from the super-reduced VAT rate as part of the said “housing VAT”  is, even if this relationship appears to be B2C (business to consumer), for the purposes of the “housing VAT” only provisions considered as being subject to VAT.

If a delivery is made, the applicable rate of VAT is that in force:

• on the 15th day of the month following the delivery of goods / provision of service;
• on the day when the invoice is issued, if it is issued before this date.

If instalments are paid, the applicable rate of VAT is that in force:

• on the day the instalment paid is received;
• on the day when the invoice is issued, if it is issued before the instalment is received.

As a result, the following cases may apply:

• the goods are delivered / the service is performed in 2022 and invoiced in 2022: rate of 17 %
• the goods are delivered / the service is performed in December 2022 and invoiced in 2023: rate applicable in 2023 up to 15 January, thus of 3 %
• the goods are delivered / the service is performed in 2023 and invoiced in 2023: rate of 3 %
• an instalment for the delivery / service not yet carried out is invoiced in 2022 and paid in 2022: rate of 17 %
• an instalment for the delivery / service not yet carried out is invoiced in December 2022 and paid in 2023: rate of 17 % (date of the invoice)
• an instalment for the delivery / service not yet carried out is paid in 2022 and invoiced in 2023: rate of 17 % (date of receipt)
• an instalment for the delivery / service not yet carried out is invoiced in 2023 and paid in 2023: rate of 3 %

B. For the deliveries and services performed in the B2C sector (business to consumer, the customer is neither subject to VAT, nor a non-taxable legal person), there is no obligation to issue an invoice either for the delivery / service itself (only exception, certain sales called “distance sales”, or for an instalment paid before the delivery / service has been performed.

If a delivery / service is performed, the applicable rate of VAT is that in force on the day when the delivery / service is performed (completed) (operative event).
If instalments are paid, the applicable rate of VAT is that in force on the day the instalment paid is received.

As a result, the following cases may apply:

• the delivery / service is performed in 2022 (and invoiced  in 2022): rate of 17 %
• the delivery / service is performed in December 2022 (and invoiced² in 2023): rate of 17 %
• the delivery / service is performed in 2023 (and invoiced in 2023): rate of 3 %
• an instalment for the delivery / service not yet carried out is (invoiced² in 2022 and) paid in 2022: rate of 17 %
• an instalment for the delivery / service not yet carried out is (invoiced² in December 2022 and) paid in 2023: rate of 3 % (date of receipt)
• an instalment for the delivery / service not yet carried out is paid in 2022 (and invoiced² in 2023): rate of 17 % (date of receipt)
• an instalment for the delivery / service not yet carried out is (invoiced² in 2023 and) paid in 2023: rate of 3 %.

Taking into account the instalment(s) when delivering goods or providing services

As far as taking into account the instalment when solar panels are installed:

A simple accounting reversal of the instalment has no influence on the rate that was applicable at the time when it was received or invoiced (according to the cases listed above). The only way of “reversing” the VAT due because of an invoiced/received instalment would be to reimburse the amount received to the customer.

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^{1 Annex B, points 21° and 22°, of the law amended on 12 February 1979 regarding value added tax and the grand-ducal regulation of 30 July 2002 regarding the application of value added tax on the allocation of housing for use as the principal dwelling and to original and renovation work carried out in the interest of the affected housing for use as the principal dwelling and fixing the conditions and execution methods relating to this}

^{2 Commercial invoice, without impact relating to VAT.}

The provision relating to the super-reduced rate reduces the scope of application to the level of the type of building that will be equipped with solar panels, namely “on private housing, housing and building, public and others, used for activities of general interest, and in close proximity to these”.

As far as “private housing” is concerned, this is housing of which at least three quarters of the total surface area is reserved for living purposes. The same rule applies to housing and public buildings and others used for activities of general interest: at least three quarters of the total surface area must be reserved for these purposes.

A definition of this is provided in the grand-ducal regulation of 23 December 2022 amending: 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 is added to the latest list.

The delivery and installation of photovoltaic solar panels close to housing or buildings referred to above does not interfere with the application for the super-reduced VAT rate of 3 % as long as the delivery and installation takes place on adjoining or separate properties but located close to private housing or housing and buildings, public and others, used for activities of general interest and as long as such photovoltaic solar panels are connected to the thermal and/or electrical network of the housing or buildings in question.

The grand-ducal regulation of 23 December 2022 amending: 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° […] defines in the context of the reduction of the VAT rate the “delivery and installation of solar panels” as follows: “work on a property consisting of the delivery of solar panels and their installation”.

As a result, all the parts necessary for this installation and its operation also come under the super-reduced rate, which implies the following parts of the photovoltaic solar panels: photovoltaic panels (or hybrid solar collectors), fixing rails, DC and AC electric cabling connected directly to the photovoltaic installation, inverter, electrical protection devices, bidirectional meter; and for the thermal solar panels: thermal solar collectors, fixing rails, insulated pipework, solar storage reservoir, calorimeter, peripheral equipment (power feed, regulation, heat exchangers); as well as, of course, the costs of installation.

For the photovoltaic solar panels, a storage installation (battery) is therefore not involved.

It is also important to note that the super-reduced rate only applies to such installation work on a solar power plant. Bulletin No 816 issued by the Registration Duties, Estates and VAT Authority defines this notion of “work on a property” as follows: “Therefore, there is reason for understanding this new provision not as the delivery of solar panels or the installation of such panels carried out separately, but as work on a property that consists of a delivery of solar panels with installation”.

Every outdoor or indoor car park constitutes a co-ownership lot. The owners will therefore be treated in the same way as any other co-owner who has a car park in the co-owned building, as regards both installation and charge distribution and a request for infrastructure subsidies.

In the case of rented spaces, installation requests for charging stations must be submitted through the owner of the space. However, the owner has every right to deny the tenant permission to install a charging station.
The subsidy application distinguishes between two scenarios:

1. At the tenant's request, the owner has a charging station installed. In this case, the station belongs to the owner. Moreover, it is the latter who must submit the application and who will receive the subsidy. The tenant must therefore first agree with the owner as to who will receive the subsidy, in part or in full.
2. If the tenant installs the charging station at their own expense, they can apply for the subsidy directly without going through the owner. If necessary, at the end of the lease, the tenant may be required to remove the station to restore the rented premises to their initial state.
    

Individual version:

Please note, at present, only natural persons can apply for a grant for a charging station. A joint application via the co-ownership (as a legal entity) is not currently possible.

1. Joint initiative of co-owners wishing to install one or more charging stations. One or more co-owners request the authorisation of the general assembly of the co-ownership management body to install – alone or together – one or more charging stations on an individual basis. (a*)
2. The general assembly takes a decision regarding installation of the charging stations and, in the event of a favourable vote, approves the installation. (The authorisation in question must be given to the co-owner(s) by an absolute majority, the decision must be taken by votes representing 501 thousandths or more of the co-ownership). (b*)
3. The co-ownership management body shall make sure that the installation complies with the decisions taken by the general assembly and that its subsequent use does not violate the co-ownership regulations.
4. The co-owner(s) in question are responsible, alone or jointly, for installation of the charging stations. (c*)
5. The service provider will send its invoices to the applicants, either to the individual co-owner, or to the group of co-owners concerned, as the work is completed. The co-owners concerned will pay the invoices without going through the accounts of the co-ownership, which shall not be affected. (d*)
6. The subsidy application for the installation of charging station infrastructure must be submitted either by each co-owner concerned individually and in their personal name, or by several co-owners jointly, or by the co-ownership management body – not in the name of the co-ownership but in the name of the individual co-owners concerned. (e*)
7. The Ministry of the Environment, Climate and Sustainable Development pays the aid to the co-owners in question. In the event that all individual co-owners wish to take advantage of charging stations and jointly build the charging infrastructure, it is recommended that the co-owners agree in writing on all aspects of this joint installation and on the distribution of the costs incurred in both installation and use.

*a) An authorisation from the general assembly is necessary except where the installation is to be made in a private area with a connection to an already private electric circuit that already serves this private parking space.
*b) In the event that the decision fails to garner an absolute majority, a new general meeting will be convened during which the decision will be adopted if it receives a simple majority (at least 50% + 1 of the votes available to the co-owners present or represented).
*c) A decision of the general assembly could also instruct the co-ownership management body to ensure the coordination of this installation by individual co-owners if it considers that this would be in the interest of the co-ownership.
*d) However, nothing prevents the general assembly from deciding to bear the costs of adapting the communal areas itself if it considers that this adaptation is justified to allow the creation of environmentally friendly energy infrastructure that other co-owners can join in the future.
*e) All invoices and receipts relating thereto must be attached with the grant application. If necessary, the decision of the general assembly authorising the installation of the charging station(s) can be added to the application.

In the event that all individual co-owners wish to take advantage of charging stations and jointly build the charging infrastructure, it is recommended that the co-owners agree in writing on all aspects of this joint installation and on the distribution of the costs incurred in both installation and use.

Should all of the co-owners so wish, it is simpler for the co-ownership to take care of installation of the infrastructure directly, through the co-ownership management body. In this case, the co-ownership management body should be mandated for this purpose at the general meeting authorising the co-owners to install the infrastructure in question. For the co-owners to be able to receive the State grant, it is necessary, however, that the various stations remain private and that the related invoices be drawn up in the name of each co-owner.

In case of refusal by the general assembly, the owner(s) who made the request may refer the matter to the district court of the place in which the building is located, sitting in civil matters. The latter may authorise them to carry out this work if it is not likely to harm the solidity or aesthetics of the building or disturb the other co-owners.

• A smart charging station offers users additional functionalities, e.g. self-consumption of own photovoltaic electricity.
• According to the Grand Ducal regulation, this means a charging station equipped with an integrated or external interface compatible with the Open Charge Point Protocol (OCPP) standard, Version 1.6 or higher.
   

The Open Charge Point Protocol (OCPP) is an open, manufacturer-independent standard for communication between charging stations and a central management system. This makes it possible to integrate any type or model of charging station into an intelligent charge management system, with Version 1.6 offering users more flexibility and functionality.