Germany exempts private PV systems from income tax and value added tax

With the passing of the Annual Tax Act, the German Bundestag has cleared the way for a significant tax relief for small photovoltaic systems of up to 30 kilowatts. For such systems, which are normally privately operated, income tax will not be levied from the 2022 assessment period onwards, bringing not only financial benefits but also considerable savings in terms of bureaucracy. The tax exemption also applies when several plants with a total output of up to 100 kilowatts are operated by one person or a corporation.
From January 1, 2023, PV systems up to 30 kilowatts, including any storage system, will be exempt from VAT. This applies to systems on or near homes as well as on public buildings or buildings serving the public good. This means that the previous, complex variants for VAT reimbursement are no longer necessary.
The changes still have to be confirmed – probably on December 16 – by the Bundesrat (the representation of the German states). However, no changes are expected there.

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