Photovoltaic installations — VAT clarifications in Luxembourg
Photovoltaic installations — VAT clarifications in Luxembourg
The Luxembourg VAT authorities have published Circular n. 814 of 1 June 2026, in which they take position on a number of issues relating to the VAT treatment applicable to photovoltaic installations.
The circular is relevant for individuals, businesses, real estate owners and energy communities, as it clarifies when the operation of a photovoltaic installation gives rise to VAT obligations and when it allows the deduction of the VAT incurred on the investment.
The basic principle is simple: the VAT treatment depends on how the electricity produced is used.
The circular is relevant for individuals, businesses, real estate owners and energy communities, as it clarifies when the operation of a photovoltaic installation gives rise to VAT obligations and when it allows the deduction of the VAT incurred on the investment.
The basic principle is simple: the VAT treatment depends on how the electricity produced is used.