You are obliged to register your PV system with the tax office within the first month. By feeding in electricity, you generate profits on which you must pay income tax. Sales tax is also payable on the revenue generated from photovoltaics. Exceptions are stand-alone PV systems, which do not have to be registered with the tax office.
Who has to register a PV system with the tax office?
Every PV system that is connected to the public grid must be registered with the tax office. You have one month from the date of commissioning to register. Commissioning is the start of a commercial activity, as you receive remuneration for feeding the electricity into the public grid.
The only real exception for not registering with the tax office is if your photovoltaic system is an off-grid system or a zero-feed-in system. Since an off-grid system is not connected to the public grid, you cannot receive a feed-in tariff and therefore cannot make a profit.
What are the tax implications of registering a PV system with the tax office?
Two types of taxes are relevant: the income tax and the sales tax. These are always treated separately. Anyone who earns an income is liable to pay income tax, including income from a photovoltaic system. Sales tax is only charged on commercial activities.
Income Tax on Photovoltaics
Since you will generate profits with your PV system over 20 to 30 years, you must also include these in your income tax return. The income from the investment is part of your income such as salary, wages and pension. It is made up of the following:
- payments received for feeding the electricity into the public grid
- share of self-used electricity
These revenues are compared with the costs of the investment. This is how the amount of profit is defined.
If the output of your PV system is less than 10 kWp and the PV system on your own roof installed, you could previously see it as "hobby" with the tax office. You were then exempt from income tax, both on the electricity fed into the grid and on the electricity you used yourself. In return, you could but no costs tax assert.
In the January 2023 However, new tax relief for photovoltaics This also means that income tax on solar yields and feed-in tariffs are no longer applicable. The relief applies to all PV systems up to 30 kWp for single-family homes and up to 15 kWp per residential unit in multi-family houses. The hobby rule is therefore no longer applicable.
Photovoltaic VAT
In addition to income tax, there are additional taxes on both the income from the feed-in tariff and the amount of solar power consumed. 19 percent sales tax (VAT), which you must pay to the tax office.
If you register a business for your PV system, you also pay sales tax. The advantage of this is that you are now entitled to deduct the input tax, which means you get the VAT paid on the acquisition costs of the plant again. However, you should remember that with a business you also have to make an additional tax return.
One way to avoid VAT is the small business regulation.
The new tax relief also applies here and the purchase of a PV system is tax-free. purchase price private PV systems omitted namely now also the VAT. This means that registering a business just to claim input tax is no longer necessary.
PV system and the small business regulation
If the annual turnover (note: not profit) of your PV system is less than €22,000, you can small business regulation (§19 UStG) apply. As a small business owner, you are exempt from sales tax, but you are not allowed to claim input tax.
Photovoltaics without tax office?
photovoltaics without tax office and the associated bureaucratic effort is possible. To do this, select the small business regulation, which exempts you from paying sales tax. Income tax is generally not payable anyway thanks to the new tax relief.
Conclusion
You must register your PV system with the tax office if you make a profit from it. The registration must within a month after commissioning. If the tax office classifies the operation of the PV system as a business activity, you must pay tax on the income.
You can avoid VAT by applying the small business regulation. If your PV system is smaller than 30 kWp or 15 kWp per residential unit, you will not be charged VAT. income tax.
