Do I get VAT return on my home battery?

Yes, in the Netherlands you can potentially reclaim the 21% VAT on the purchase and installation of a home battery — but only if you qualify as a VAT-registered entrepreneur. If your battery is used purely for private consumption, VAT cannot be reclaimed.

When VAT Return is possible in the Netherlands

You can apply for a VAT refund if all of the following conditions are met. Your home battery must be a smart system connected to an EMS controller that can automatically charge and discharge based on electricity prices. This means the battery actively responds to market signals rather than only storing excess solar energy.

You must have a dynamic energy contract with your energy supplier. This contract allows you to buy electricity when prices are low and sell electricity back to the grid or receive market-based compensation when prices are high.

You need to actually trade electricity or generate taxable turnover. Selling electricity back to the grid is considered an economic activity, which makes you a VAT entrepreneur rather than a private consumer.

Both the battery invoice and the energy contract must be in your name. The person claiming the VAT refund must be the same person listed on all relevant documents.

You must not be enrolled in the Small Business Scheme (KOR) at the time of purchase. If you are currently exempt under the KOR, you need to deregister first so you become VAT-liable before reclaiming VAT.

Important consequences to consider

If the battery is used only for private purposes and no electricity is traded or compensated, VAT cannot be reclaimed.

Once you are registered for VAT, you are required to submit VAT returns to the Belastingdienst. You may also need to pay VAT on electricity you sell back to the grid, even if part of the system is used privately.

There is a VAT adjustment period of up to five years. During this period, the tax authority may reassess how the battery is used. If private use increases compared to business use, part of the reclaimed VAT may need to be repaid.

Example of the financial impact

 If a home battery costs €7,260 including VAT, the VAT portion is €1,260. If all conditions are met, this amount can be reclaimed, reducing your net investment cost and shortening the payback period. The exact benefit depends on how much electricity you trade and how you report VAT.

How this works outside the Netherlands

Within the European Union, VAT rules for home batteries differ by country. In many member states, VAT is charged at the standard rate and can only be reclaimed by VAT-registered businesses that use the battery for economic activity. Private homeowners usually cannot reclaim VAT unless a specific national incentive applies.

Some countries offer reduced or zero VAT at the point of sale for residential energy systems. In these cases, VAT is not refunded afterwards but simply not charged on qualifying installations.

Examples include the United Kingdom, where certain residential battery installations qualify for 0% VAT when installed by a certified installer, and Germany, where solar and battery systems may be zero-rated if specific conditions are met.

Outside the EU, VAT-style refunds generally do not apply. Instead, countries may offer tax credits, rebates or other incentives for energy storage systems.

What to check before buying a home battery

For the Netherlands, confirm that your battery and energy contract support electricity trading. Decide whether you are willing to register for VAT and submit returns, and check whether you need to deregister from the KOR. Also be aware of VAT reclaim deadlines, which usually fall within the year of purchase.

For other countries, check your national VAT rules carefully and see whether a zero or reduced VAT scheme exists for residential installations.

If in doubt, it is strongly recommended to consult a tax advisor or your local tax authority before purchasing a home battery.