Taxation of Electricity Sales from Photovoltaic Installation: VAT Considerations

• Company Y, a VAT active taxpayer, uses a photovoltaic installation based on a lease agreement
• Y generates electricity in a micro-renewable energy installation with a total capacity not exceeding 50 kW
• Y reported the photovoltaic installation on October 1, 2023, and is subject to net-billing according to the Renewable Energy Sources Act
• Excess energy produced by Y is introduced into the energy network, creating a prosumer deposit
• The value of the prosumer deposit for January 2024 was 1230 PLN
• The company’s tax year is the calendar year, with a CIT rate of 19%
• The company should account for the prosumer deposit in terms of VAT and CIT
• VAT is applicable to paid goods and services in the country
• The condition for VAT taxation is the existence of a direct relationship between the supply of goods and the received payment

Source: podatki.gazetaprawna.pl

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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