VAT exemption for photovoltaic systems: Overview of conditions and practical aspects

• A real tax exemption (zero tax rate) for services related to photovoltaic systems is proposed in the draft Budget Accompanying Act 2024
• The exemption includes deliveries, intra-Community acquisitions, and imports of photovoltaic systems and their installation, subject to certain conditions
• Conditions for the exemption include the power output of the photovoltaic system not exceeding 35 kilowatts, and the system being operated on or near specific types of buildings
• The exemption also applies to ancillary services related to the delivery of the photovoltaic system, such as the additional delivery and/or installation of accessories or a storage system
• Suppliers and installers of photovoltaic systems need to consider the continued application of VAT on the purchase of photovoltaic modules from upstream suppliers, as well as the treatment of advance payments made before the effective date of the exemption
• The draft law does not specify specific documentation requirements for proving eligibility for the exemption, but it is recommended to have a confirmation of the buyer’s status as the operator of the system and the presence of a qualifying building in the purchase contract.

Source: leitnerleitner.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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