Germany Updates — February 2023

Germany Clarifies VAT Treatment of Small Photovoltaic Systems from 2023

Germany introduced a new zero VAT rate for certain small photovoltaic systems from January 1, 2023. The Federal Ministry of Finance (BMF) has now published its final guidance on the new rules. The guidance clarifies which supplies, installations, storage systems and components qualify for the zero rate. It also explains how existing systems, private electricity consumption, leasing models and transfers of photovoltaic systems should be treated for VAT purposes.