VAT Treatment for Small PV and Hydro Power Plants

The Federal Ministry of Finance (BMF) confirmed acceptance of a facilitated VAT treatment for small PV and hydro power plants with a capacity of up to 30 kW.

In a letter published by Clearingstelle EEG (EEG Clearing Agency), BMF stated that the simplified procedure applied to all installations in which the electricity is measured by a meter without reverse running stop (Rücklaufsperre) and no other devices are consuming electricity via the same power connection.

BMF responded to recommendation 2008/20 by Clearingstelle EEG of late December 2009. Clearingstelle EEG points out that the BMF clearance only refers to the VAT exemption, but does not constitute an exemption of the electricity tax (Stromsteuergesetz – StromStG).

Source: Clearingstelle EEG