The concept of the “granting of credit” is to be interpreted broadly for the purposes of VAT exemption. This is confirmed by the ECJ in its judgment on the VAT exemption of sub-participations in loan receivables. Despite the special nature of the underlying particular financial instrument, the ECJ assumes a pleasingly clear position with its general statements on the requirements for the VAT exempt granting of credit and continues to develop the broad interpretation manifested in its previous jurisprudence.
In its letter of 16 September 2022, the Federal Ministry of Finance published a new model form for providing proof that the conditions for VAT exemptions, in accordance with sec. 4 no. 7 of the German VAT Act, for supplies to special institutions (such as NATO troops and intergovernmental institutions) have been met. This new form also serves as proof of the use of goods by certain EU institutions in response to the COVID-19 pandemic within the meaning of sec. 4c of the German VAT Act.
The government draft of the Annual Tax Act 2022 provides for a new VAT regulation for the purchase of (private) photovoltaic systems (PV systems). Especially for smaller PV systems, a so-called zero VAT rate for the supply and installation of solar modules will be applied as from 1 January 2023. If a PV system is ordered today, it will probably not be supplied until 2023. Suppliers/installers should therefore not delay in acting in light of this new regulation.