How to declare photovoltaic income in the pre-filled form?


Emma Potter

The growing popularity of photovoltaic systems has led many people to wonder how to properly declare the proceeds from the sale of excess energy produced.

Recently, the Revenue Agency responded to a specific question regarding the collection of amounts from GSE for photovoltaic systems in 2023.

How should these incomes be declared? What are the instructions to follow?

The reader’s question

A reader asked for clarification on how to include the income from GSE for a photovoltaic system in the pre-filled tax return. She identified the section “Other income” but did not find the correct definition among the available reasons.

The Revenue Agency has clarified that the proceeds from the sale of energy produced in excess of one’s own needs, if the “dedicated withdrawal” regime is used, are considered for tax purposes as “other income”.

These contributions received by the owner of the photovoltaic system, a natural person not carrying out business activities, must be indicated in the tax return.

Specifically, such income falls into the category of “income from commercial activities not habitually carried out” and must be reported, with code 1, in line D5 of the 730 form (section D – “Other income”).

For those submitting the Personal Income form, the line in which to indicate this income is RL14 (column 2).

For further details, the Revenue Agency refers to circular no. 46/2007, which provides comprehensive clarifications on the tax treatment of proceeds from the sale of energy produced by photovoltaic systems.