Alex85
2016-12-17 15:33:37
- #1
If a small business is registered according to §19 UStG, the value-added tax on self-consumption is waived. If no small business is registered, the input tax on the plant costs can be reimbursed, but value-added tax is payable on self-consumption.
Yep, correct. Although the former only comes into question if there are no other income from self-employment, because €17,500 annual turnover is quickly reached (with a normally sized photovoltaic system on a single-family house, of course not). The second scenario is also likely the one regularly used, as it makes economic sense. A 7 kWp system costing €9,100 net (€1,300/kWp) would cause a VAT liability of €1,729. Self-consumption costs about 4 cents per kWh of electricity, i.e., the small business regulation would only be advantageous after over 43,000 kWh of self-consumed electricity. The effect increases significantly if the system is larger and thus more expensive, if VAT on all other procurements and services related to the photovoltaic system were included, or if the investment, e.g., through battery purchase, were significantly higher. The breakeven will probably only be reached after the system’s end of life in this simple example and thus never occur. Those who shy away from the bureaucracy of VAT advance returns - which is totally easy if you know how to do it - can of course outsource this task. The costs for that, in turn, reduce profits and are probably worthwhile compared to foregoing the VAT reimbursement.