VAT-free delivery of solar systems and components to private customers in 2023
In the draft annual tax law (JstG 2022), the federal government is planning significant tax breaks for operators of photovoltaic systems and components for the corresponding systems. This applies to both income tax, which is incurred when selling the electricity generated, as well as sales tax for the purchase, delivery and installation of photovoltaic systems and electricity storage.
We assume that the exemption from VAT will apply to large parts of our range from January 1st, 2023. We would therefore like to offer our customers the possibility of pre-ordering as follows:
Send us your order to email@example.com
Do not order additionally in the shop!
- Full name
- Complete billing address and possibly different delivery address
- A valid phone number
- If payment via PayPal is desired, a valid PayPal email address for sending a payment request via PayPal
processing your order
- The order is initially created including the currently applicable sales tax of 19%
- The payment of the order can be made net, i.e. in the case of bank transfer the amount is to be transferred without sales tax (is shown separately) and in the case of payment via PayPal we also send the payment request for the net amount
- At this point in time, 19% sales tax is still open for payment in the system
- Payment must be made within 10 days of placing the order, otherwise the order must be cancelled
- As soon as the law has been passed by the Bundestag and Bundesrat, we will inform you on this page - we will also send a message via newsletter to all registered customers in the event of changes - you can register on our website by simply entering your e-mail address at the bottom Scroll down and enter your email address under "Sign up for the newsletter".
- According to the law, we change all open orders accordingly to 0% VAT, the orders are therefore released for shipping from an accounting point of view
- Internally, the orders must remain blocked until January 1st, 2023, since the delivery and invoicing of this order must take place in 2023 -> release will only take place afterwards
- You will receive order-related information on the expected delivery date in your order confirmation
At this point we would like to expressly point out that a VAT-free delivery of your order will only take place if the legal framework allows this. We will inform about changes on this page, as well as via newsletter. If we need further information, documents or confirmations after the order and payment because the legislator requires this, we will inform you proactively. If your order contains items that we believe do not fall under the new law, we will also proactively inform you about this and propose an appropriately adapted procedure.
It can be said that, especially for us as online retailers, it is currently not absolutely clear how the new law should be implemented. This is primarily due to the fact that the law has not yet been passed. When Offgridtec asked the Federal Ministry of Finance a few days ago, we received the following information: "The annual tax law is currently the subject of deliberations in the German Bundestag, so it is in the legislative process. Changes may still occur during this time. There is no valid legal position yet. The package of measures is expected to come into force on January 1, 2023.”
According to the draft, the exemption from VAT should apply to:
- the deliveries of solar modules to the operator of a photovoltaic system, including the components essential for the operation of a photovoltaic system and the storage devices used to store the electricity generated by solar modules, if the photovoltaic system is on or near private homes, apartments and public and other buildings used for activities serving the public interest. The requirements of sentence 1 are deemed to be met if the installed gross output of the photovoltaic system is not or will not be more than 30 kilowatts (peak) according to the market master data register;
- the intra-community acquisition of the items referred to in number 1 that meet the requirements of number 1;
- the import of the items specified in number 1 that meet the requirements of number 1;
- the installation of photovoltaic systems and the storage used to store the electricity generated by solar panels if the delivery of the installed components meets the requirements of number 1.
For us as an online retailer, the following questions arise from these points:
- what does "near private residences" mean?
- Does this mean that every investment has to be entered in the market master data register in order to be able to benefit from the zero tax rate? (the registration of each system there would be done quickly and easily)
- Does the existence of the requirements have to be checked and documented by us as a dealer?
Link to the draft Annual Tax Act 2022:
Link to the market master data register: