German Federal Cabinet approved tax relief for small PV systems

On September 14, the Federal Cabinet approved the draft Annual Tax Act 2022. In this context, tax and bureaucratic hurdles to the installation and operation of photovoltaic systems are also to be reduced.
For example, income from the operation of small photovoltaic systems will no longer have to be taxed in the future. For single-family homes and commercial properties, the power limit is 30 kilowatts (kW); for multi-family homes and mixed-use properties, the limit is 15 kW per residential and commercial unit.
Income tax assistance associations are to be allowed to provide income tax advice to their members in the future if they operate photovoltaic systems with an installed capacity of up to 30 kW that are subject to the aforementioned income tax exemption.
A zero VAT rate is to apply in future to the supply and installation of photovoltaic systems and electricity storage systems for homes and public buildings. Since photovoltaic system operators will thus no longer be charged sales tax on the purchase of the system, they will no longer have to waive the small business regulation in order to have their input tax amounts refunded.
The measures are scheduled to take effect on Jan. 1, 2023.

Related News