In principle, for all PV systems that are supplied and installed as of 1. 2023, the legislation provides for a zero rate of VAT to be applied to the supply, installation, import and intra-Community purchase of tax-privileged solar modules as well as other main components. The production of electricity from photovoltaic systems is an essential part of the envisioned energy turnaround. The Annual Tax Act 2022 of December 16, 2022 introduced an income tax exemption applicable from January 1, 2022 (cf. 72 in conjunction with § 52 Para. 4 Sentence 27 of the. In the last article, in January, with regard to the taxation of photovoltaic systems, we looked at the new regulations applicable to income tax that were introduced via the German 2022 Annual Tax Act with retroactive effect as of 1. In the following section we now discuss the changes to VAT. A solar system in Germany costs the customer 0% VAT on every component — panels, inverter, battery, and labor. No VAT will be charged for sales subject. VAT on solar installation ranges from 0% in Germany, UK, and the Netherlands to 10% in Italy and Spain.
