VAT relief for photovoltaic systems in 2023 under the Annual Tax Act 2022
On 1 January 2023, the revised Annual Tax Act (JStG) enters into force, making the purchase of photovoltaic systems more affordable for operators. Specifically, this concerns the saving of the VAT or sales tax rate.
Excerpt from the German Value Added Tax Act – pursuant to Section 12(3) UStG
“The tax is reduced to 0 percent for the following transactions:
1. Supplies of solar modules to the operator of a photovoltaic system, including the essential components required to operate a photovoltaic system and storage systems used to store the electricity generated by the solar modules, where the photovoltaic system is installed on or near private homes, dwellings, and public or other buildings used for activities serving the common good. The requirements of sentence 1 are deemed to be met if the installed gross capacity of the photovoltaic system according to the Market Master Data Register does not exceed 30 kilowatts (peak) or will not exceed 30 kilowatts (peak);
2. the intra-Community acquisition of the items referred to in number 1 that meet the requirements of number 1;
3. the import of the items referred to in number 1 that meet the requirements of number 1;
4. the installation of photovoltaic systems and storage systems used to store the electricity generated by solar modules, where the supply of the installed components meets the requirements of number 1.”
Who is eligible for the tax relief?
Operators of a photovoltaic system with an installed gross capacity of less than or equal to 30 kW (peak), or operators of a planned photovoltaic system with a gross capacity greater than 30 kW (peak), provided that the system is installed on or near private homes, dwellings, or public and other buildings used for activities serving the common good. The Annual Tax Act applies to Germany and therefore to purchases for which the delivery and invoice addresses are in Germany. We cannot make sales to other countries at 0% VAT.
Which products qualify for the tax relief?
The provision applies to all components of a photovoltaic system, such as photovoltaic modules, inverters and battery storage systems. This relief is intended for systems installed close to residential buildings or on/in publicly used buildings. These are defined in detail in Section 12(3) UStG. Accordingly, when purchasing complete systems (except mobile systems), solar modules and, in some cases, inverters and batteries, you can assume that they qualify for the relief.
Can I also apply for this relief from abroad?
We cannot make sales to other countries at 0% VAT.
How do I order without VAT?
1. Initially, you can only purchase the goods with VAT. We kindly ask you not to place mixed orders. If you would like to order additional items, please place a separate order.
2. When selecting the payment method, please make sure to choose “Payment in advance” and then complete the order.
3. You will receive an order confirmation. A *form will be attached. Please complete it in full and return it to us.
4. Once we have received and checked the form, we will correct the VAT on the invoice to 0% and send it to you for payment. 5. The goods will be dispatched within 5 working days after receipt of payment.
* By completing the form, you confirm that your system meets the other statutory requirements. If an order placed in 2022 is only now being delivered, please check whether the requirements are met. If they are, please also return the completed form to us.
Metal products for your solar project
Are you looking for metal for supporting structures, covers or custom components in addition to photovoltaic modules? METALXACT offers product categories to support your project planning. Check the technical details and available options in the relevant product listing.
- Aluminium profiles: Made-to-measure aluminium solar profiles for project-specific structures.
- Metal profiles: The made-to-measure metal profiles overview includes profiles in various materials.
- Sheets and plates: Sheets and plates made to measure for covers and flat components.
- Tubes: Explore metal tubes and profiles for suitable tube and frame solutions.
- Surface finish: Find out about available powder coatings.
- Custom selection: Use the metal configurator or find out about metal cutting.
Whether a specific metal product qualifies for the zero VAT rate depends on the statutory requirements and the individual circumstances. Product availability alone does not constitute confirmation of tax relief.
Frequently asked questions about VAT on photovoltaic systems
What does the zero VAT rate for photovoltaic systems mean?
Section 12(3) UStG provides for a 0 percent VAT rate on certain supplies, intra-Community acquisitions, imports and installations relating to photovoltaic systems. The statutory requirements must be met in each individual case. You can find the current text of Section 12 UStG on the website of the German Federal Ministry of Justice.
Which photovoltaic systems qualify for the 30 kW peak rule?
Under Section 12(3) UStG, certain requirements are deemed to be met if the installed gross capacity recorded in the Market Master Data Register is no more than 30 kilowatts peak, or will be no more than 30 kilowatts peak. For systems above this threshold, the other statutory requirements are decisive. Further guidance is available in the German Federal Ministry of Finance FAQ on the zero VAT rate.
Which components may qualify for the zero VAT rate?
The law refers to solar modules, essential components and storage systems used to store electricity generated by solar modules. Whether a specific item qualifies depends on its legal classification and the circumstances of the purchase.
Can I initially order the goods with VAT and receive a correction later?
According to the METALXACT procedure described on this page, you initially order with VAT and payment in advance. Once the completed form has been received and checked, the invoice is corrected to 0 percent VAT, as stated on this page.
Can METALXACT supply goods to other countries at 0 percent VAT?
No. According to the information on this page, sales to other countries at 0 percent VAT are not possible.
Where can I find the form for the review?
The form is available to download on this page. Complete it in full and return it to METALXACT as instructed in the order confirmation.
Where can I find metal profiles for a solar project?
METALXACT offers aluminium solar profiles and other made-to-measure metal profiles. Check the materials, dimensions, options and prices available in the relevant shop product. Choosing a profile alone does not confirm eligibility for tax relief under Section 12(3) UStG.