According to the Finance Act 2022, in the future, a zero VAT rate is to apply to the supply, intra-Community acquisition, import and installation of photovoltaic systems and electricity storage systems, insofar as the service is provided to the operator of the photovoltaic system and the system is installed on or in the vicinity of private residences/apartments and public and other buildings used for activities serving the public good. Since photovoltaic system operators will no longer be charged VAT on the purchase of the system, they will no longer have to waive the small business regulation to have the input tax amounts refunded. They should thus be relieved of bureaucratic burdens.
The Bill for Temporary reduction of VAT rate on gas supplies proposes to reduce the VAT rate on the supply of gas through the natural gas network to 7 per cent from 1 October 2022 to 31 March 2024. The Federal Government expects taxable companies to pass this reduction on to citizens on a 1:1 basis. If it is passed on in full, a corresponding price reduction and thus a noticeable reduction in the burden on citizens should be made possible.
Source: PwC DE
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