Last week, the German Parliament approved a new tax relief package for rooftop PV, including a VAT exemption for PV systems up to 30 kW.
      It is understood that the German parliament debates the annual tax law at the end of each year to draw up new regulations for the next 12 months. The annual tax law for 2022, approved by the Bundestag last week, revises the tax treatment of PV systems for the first time on all fronts.
      The new rules will address a number of key issues for small PV systems, and the package contains two important modifications to PV systems. The first measure will reduce the VAT on residential PV systems up to 30 kW to 0 percent. The second measure would provide tax exemptions for operators of small PV systems.
      Formally, however, the fix is not a VAT exemption on the sale of PV systems, but rather a net price billed by the supplier or installer to the customer, plus 0% VAT.
      The zero VAT rate will apply to the supply and installation of PV systems with the necessary accessories, it will also apply to storage systems in residential buildings, public buildings and buildings used for public utility activities, there is no limit to the size of the storage system. The income tax exemption will apply to income from the operation of PV systems in single-family homes and other buildings up to a size of 30 KW. in the case of multi-family homes, the size limit will be set at 15 KW per residential and commercial unit.