Luxembourg: Proposed energy-related temporary tax credits; guidance regarding VAT treatment of photovoltaic solar installations
Resilience Package 2026 includes proposed energy-related temporary tax credits from June 1, 2026.
The government on June 8, 2026, announced the Resilience Package 2026, which includes proposed temporary tax credits from June 1, 2026, for electricity, petrol and diesel, gas, and heating oil.
In addition, the Luxembourg Registration Duties, Estates and VAT Authority (AED) issued Circular No. 814 (dated June 1, 2026) clarifying the VAT regime applicable to photovoltaic solar installations connected to the electricity grid. The circular explains that VAT treatment depends on whether the electricity produced is sold, fully self-consumed, or partly self-consumed with surplus sold, and confirms that photovoltaic installations are treated as immovable property for VAT purposes.
For more information, contact a KPMG tax professional in Luxembourg:
Frederic Scholtus | frederic.scholtus@kpmg.lu
Quentin Warscotte | quentin.warscotte@kpmg.lu