Umsatzsteuer Newsletter


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.
Umsatzsteuer Newsletter 38/2022
One week after the German Bundestag, the German Bundesrat has now also voted, in today’s session, on the temporary reduction of VAT on supplies of gas and district heating. With retroactive effect as from 1 October 2022, extending to 31 March 2024, a VAT rate of 7%, instead of 19%, will be applied. This will result in major problems for those gas and heat suppliers affected by it. In response to this issue, the Federal Ministry of Finance published a draft letter on its website on 22 September 2022. This draft letter currently only takes into account supplies of natural gas. Nevertheless, an update is expected shortly regarding district heating. Our KMLZ VAT newsletter provides you with an initial overview of these changes.