zero tax rate

Information on the application of the zero tax rate according to Section 12 Paragraph 3 UStG  

1. Legal basis

Since January 1, 2023, the legal regulation pursuant to Section 12 Paragraph 3 of the Value Added Tax Act (UStG) has been in force in Germany, according to which certain deliveries and installations of photovoltaic systems and essential components are subject to a VAT rate of 0% (so-called "zero rate").  

2. Conditions for applying the zero tax rate  

The application of the zero tax rate is only permissible if the following conditions are met cumulatively:  

  • The photovoltaic system is installed on or near a residential building or a building used for public purposes (e.g. schools, kindergartens, non-profit institutions).
  • According to the market data register, the total installed capacity of the plant does not exceed 30 kWp.
  • The purchaser is the operator of the facility and acts in his own name and on his own account.
  • The components are not purchased for resale or for commercial purposes.
  • The purchaser has his or her place of residence or habitual abode in Germany.  

3. Ordering process  

In the solarkontor.de online shop, affected products are marked with a "0% VAT" notice. In these cases, the prices are displayed without VAT.  

Before submitting your order, you'll receive a notice with a checkbox during the checkout process. By checking this box, you confirm that you meet the requirements of Section 12 (3) of the German Value Added Tax Act (UStG).  

Important note: If you do not meet the requirements, we are legally obligated to subsequently collect the statutory VAT (currently 19%) . In this case, a retroactive adjustment of the tax rate may be made.  

4. Differentiation between eligible and non-eligible products  

The following are subject to tax exemption (zero tax rate):  

  • solar modules,
  • inverter,
  • Energy storage (e.g. batteries),
  • assembly technology,
  • necessary accessory components.  

The following are not eligible:

  • Mobile solar modules for camping or leisure use,
  • Individual products that are not used in connection with a PV system according to Section 12 Para. 3 UStG,
  • Services for commercial resale.

5. Definitions  

  • Installation close to a building: A photovoltaic system is located "close" to a building if it is installed on the property or in direct functional connection to the building.
  • Dwelling: Any enclosed space used for living or sleeping. Garden sheds or permanently installed caravans may also fall under this definition.
  • Public use: Buildings used for governmental, charitable, non-profit or religious purposes.  

6. Note on the legal situation  

The zero-rating rate pursuant to Section 12 (3) of the German Value Added Tax Act (UStG) has been in effect since January 1, 2023. A statutory time limit is currently not planned. However, changes by legislators or tax authorities are possible at any time.  

7. Contact & Advice  

If you have any questions regarding tax treatment or the specific applicability of the requirements, we would be happy to advise you. Please write to us at:  

projekt@wattstunde.de  

Keyword: "Zero-tax photovoltaics"  

Please note that we are not permitted to provide tax advice on individual cases. If you have any questions, please contact your tax advisor or the relevant tax authority.  

8. External sources of information

This notice is for information purposes only and does not constitute tax or legal advice in individual cases.  

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