Photovoltaics in Companies: Prosumer Deposit and VAT Implications for VAT-Paying Businesses

• Companies with photovoltaic installations that feed energy into the grid and are VAT payers need to carefully consider their billing system for accounting and tax purposes.
• The net-billing system, introduced as a result of an amendment to the Renewable Energy Sources Act, raises issues regarding the tax settlement of invoices from the energy supplier.
• According to interpretations of VAT regulations, a company that is an active VAT payer and has amounts reducing the gross amounts payable acts as a VAT payer when using the net-billing system.
• This means that by introducing energy into the grid, the company is supplying goods to the energy company and is subject to VAT.
• An entrepreneur who is a prosumer and an active VAT payer must issue a VAT invoice for supplying energy in the net-billing system.
• The VAT liability arises when the invoice is issued or when the payment deadline expires if the invoice is not issued or is issued late.
• The VAT taxable base for a VAT-taxpayer company generating electricity from a renewable energy sources installation should be reduced by the amount of output VAT.
• The value on invoices from the power company, presented as a deduction amount, is a gross amount with VAT.

Source: krgroup.eu

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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