VAT exemption
The revised version of the Annual Tax Act (JStG) came into effect on January 1st, 2023. Of particular importance to you is the associated funding in the area of renewable energies. The included decree stipulates that electricity generation and storage solutions are exempt from VAT. In concrete terms, this means reduced costs for photovoltaic systems and storage systems as well as for individually subsequently installed components.
Requirements
The use of the solutions and components is subject to the following conditions:
- Operation/installation in Germany
- Private or sometimes public use
- The total output of the systems is less than 30 kWp
Private use includes the living environment, balconies, gardens, garages, garden sheds, fences and even mobile homes or boats that are not moved at all.
Who does benefit?
The decree affects delivery, assembly and operation within or to Germany and thus all purchases with a delivery and billing address in Germany. Sales with 0% VAT to other countries are not permitted.
Which products and services are affected?
The exemption applies to complete systems or subsequently purchased components of power generation and/or storage solutions as well as delivery and installation. If the requirements are met, the tax exemption applies to the following products and services:
- Solar panels
- Inverters and other electronic control components
- Power storage and batteries
- Complete packages consisting of the above-mentioned parts
- Components from the MobilPV category
- Installation
- Shipping