PV system VAT 2022?

Question

I had a nearly 10 kWp PV system with storage installed in 2022. I opted for standard VAT. I received a refund of the 19% VAT on the invoice from the tax office. I had to pay VAT for five years before I became eligible for the small business regulation. I've already received confirmation from the tax office that the PV system could be withdrawn at a zero-rate tax for 2023. Now it's time to file my VAT return for 2022. I did it myself because my tax advisor let me down. The tax office is now demanding a full refund of the VAT from 2022. What went wrong?

kttk85 · Answer

I am not entirely up to date with the changes in PV systems, but according to this article

https://rsw.beck.de/zeitschriften/bc/news-beitraege/2023/12/14/pvv-anlagen-r%C3%BCckactendentnahme

it seems to be a mistake of the tax office

There Collection one Taxable sales to 0% This does not result in any negative effects on the deduction of pre-taxes – in particular, the withdrawal does not lead to a pre-tax adjustment.

kegus · Answer

§ 15a UStG. For an economic asset of fixed assets where the ratios change within 5 years of use, the advance tax shall be adjusted. However, in my opinion the full sum should not be reclaimed, but only the share from 01.01.23. If it does. But this will be the thought of the FA behind it. (almost explained in the communication)

I read the article Kttk85 quoted. Strangely, Haufe says something else https://www.haufe.de/taxation/legislative policy/tax relief-fuer-smallere-photovoltaikanlagen-ab-2023_168_578022.html

For all photovoltaic systems or components already supplied or mounted before 1.1.2023 , the existing regulations and voting rights for turnover tax further . Those who have opted for control, for example, in 2022, for which this also remains decisive from 2023. However, a return as early as possible to the status of a small business operator will normally be recommended. This is possible without tax disadvantages at the earliest after the expiry of the correction period according to § 15a UStG and thus after 5 years.

§ 12 UStG speaks of a tax rate of 0% for deliveries to operators. However, a withdrawal is in principle according to § 3 para. 1b of a delivery for payment. This is probably the rule to which the article of Beck refers.

Honestly, I can't say what's right and whether you have to interpret the wording of § 12 differently than you would suspect. I'd have to do more research.

Update: further articles found at Haufe, which confirms beck. Unfortunately, there is nothing explicit in the two BMF writings for removal. However, on its information page, the BMF also points out that a withdrawal is subject to the zero rate if the installation meets the corresponding conditions.

https://www.haufe.de/steuer/finanzverwaltung/Application-des-nullsteuersatz-fuer-dee-photovoltaikanlagen_164_611108.html

This makes me think that a recovery of the pre-tax is probably not right. However, you are still bound to the option in terms of feed-in remuneration, ie this is still subject to the VAT.