Shock for the PV industry: premature ending for VAT exemption!

Shock for the PV industry: premature ending for VAT exemption!

The new federal government in Austria has made a dramatic false start in energy policy within just one week. The National Council decided to prematurely abolish the VAT exemption for small photovoltaic systems up to 35 kWP and the introduction of an energy crisis contribution current. For many companies in the photovoltaic industry, these measures come into the face of a financial blow. Vera Immitzer, Managing Director of PV Austria, said indignantly: "Thousands of customers and PV companies are abandoned for nothing", as noted in a press release that also noted from pv magazine was taken up.

It was only since the beginning of 2024 that the exemption from the 20 percent VAT for small PV systems has been the exemption from the 20 percent VAT. With the sudden decision of the government to abolish the regulation in April, estimated income of a maximum of 40 million euros and not 175 million euros as expected. "The decision to fully tax PV systems is a breach of trust in private households and domestic craft businesses," criticized Herbert Paierl, CEO of PV Austria. The association had shown in a survey that 90 percent of companies expect a drastic decline in demand. This was confirmed by OTS

consequences of the new regulation

pv Austria asks the government to rethink the announced tax policy and to view the alleged additional income realistically. "A purely revenue-like taxation of PV small systems is a blow to the already ailing business location in Austria," continues Paierl. The association appeals to the government of immediately launching an investment funding program for PV systems and electricity storage so as not to endanger the future of renewable energies. With the introduction of the energy crisis contribution, the production of domestic, renewable electricity is also more expensive, which could continue to drive up high energy prices.