Ministry of Finance Provides Clarification on Zero VAT Rate for Photovoltaic Systems

• Zero VAT rate introduced for supply of photovoltaic systems from 1 January 2023
• Ministry of Finance publishes circular letter to address interpretation issues
• Circular letter clarifies that supply of PV system with electricity storage is a single transaction
• Solar carports and solar patio roofs are considered independent beneficiary PV systems
• Mounts for PV systems are taxable at zero VAT rate, but primary substructure is not
• Electricity storage systems with usable capacity of at least 5 kWh are eligible goods
• Energy storage systems that store electricity in hydrogen are favored, as long as hydrogen is only used to convert energy back into electricity
• Extension of electric cupboard is favored if it is due to acquisition of PV system
• Electricity consumer machines operated with PV system and roof/ground services purchased separately are not favored
• Special case for “old systems” allows PV system operators to withdraw at zero VAT rate if more than 90% is used for private purposes
• Withdrawal can be made until 11 January 2024 with retroactive effect from 1 January 2023.

Source: kmlz.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.

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