- The Federal Ministry of Finance (BMF) has provided clarification on the application of the zero tax rate for certain photovoltaic systems.
- The BMF has updated the Unified VAT Application Guidelines (UStAE) in relation to this matter.
- The withdrawal of a photovoltaic system using the simplification rule of section 2 paragraph 5 of the BMF letter dated February 27, 2023, is a choice for the entrepreneur and must be documented.
- The conditions for the simplification rule mentioned in the BMF letter of February 27, 2023, can also be fulfilled by occasionally charging the electricity into a non-business-related electric vehicle or operating a heat pump that is not assigned to the business.
- The withdrawal of a photovoltaic system can generally only be done at the current time and not retroactively. However, in exceptional cases, if certain conditions are met, a withdrawal declared to the tax office by February 11, 2024, can be retroactively effective from January 1, 2023.
- Input tax deduction for supplies or services related to a withdrawn photovoltaic system is only possible to the extent of business use and subject to the conditions of section 15 of the VAT Act.
- If a photovoltaic system and an energy storage system are purchased together in a single contract, they are considered a single entity. If the conditions of section 12 paragraph 3 of the VAT Act are met, the zero tax rate applies to the entire system.
- If a taxpayer purchased a photovoltaic system before January 1, 2023, and opted for regular taxation, they are still subject to the 5-year binding period of section 19 paragraph 2 of the VAT Act, even if they withdraw the photovoltaic system from the business. An early switch to the small business scheme is not possible, and the feed-in tariff remains subject to VAT.
- A switch to the small business scheme only constitutes a change in the circumstances under section 15a paragraph 7 of the VAT Act in relation to the original input tax deduction if the photovoltaic system is still in the business. Once the system is withdrawn, any change in circumstances is no longer relevant if the withdrawal occurs just before the switch to the small business scheme.
Source: datenbank.nwb.de
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.
