Application of Zero Tax Rate for Certain Photovoltaic Systems: Individual Questions Answered by BMF

• The BMF issued a letter on November 30, 2023, regarding the application of the zero tax rate for certain photovoltaic systems.
• The zero tax rate for certain photovoltaic systems was introduced on January 1, 2023, through the Annual Tax Act 2022.
• The BMF previously addressed some VAT-related issues in a letter on February 27, 2023, and made changes to the UStAE.
• The BMF now provides further clarification on specific questions regarding the zero tax rate for photovoltaic systems.
• The withdrawal or free transfer of a photovoltaic system acquired before January 1, 2023, and eligible for full or partial input tax deduction is subject to VAT as a free transfer of value.
• The previous letter from February 27, 2023, includes a simplification rule stating that a withdrawal is only possible if at least 90% of the generated electricity is used for non-business purposes.

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.

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