Colm Burke (Cork North Central, Fine Gael)
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127. To ask the Minister for Finance further to the recently approved amendment to the Finance Bill 2023 to apply a zero per cent VAT rate for the supply and installation of solar panels, where the zero VAT rate applies, and if he could clarify whether it is applied to the wholesaler or claimed back retrospectively; and if he will make a statement on the matter. [25407/23]

Michael McGrath (Cork South Central, Fianna Fail)
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From 1 May 2023, and in accordance with the EU VAT Directive and Irish legislation, the supply and installation of solar panels on or adjacent to immovable property, being private dwellings, is subject to the zero rate of VAT.

For the zero rate to apply, both the supply of the solar panels and their installation must be the responsibility of the same business in the same supply (i.e. a supply and install contract). Where a wholesaler supplies solar panels, but does not install the solar panels, that supply is subject to the standard rate of VAT, currently 23%.

The Revenue Commissioners have issued guidelines on the tax treatment of solar panels; these are available at the following link - www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Services/solar-panels.pdf .