VAT Alert (21/06/2013)
Supply of electricity from private photovoltaic installations may be subject to VAT
The European Court of Justice (hereafter referred to as CJEU) has ruled that the exploitation of a grid-connected photovoltaic installation on a private residence constitutes an economic activity for VAT purposes; to the extent that the electricity produced by the installation is supplied to the grid against payment (CJEU 20 June 2013, C-219/12, Finanzamt Freistadt Rohrbach Urfahr v Unabhängiger Finanzsenat Außenstelle Linz). This ruling may bring numerous home owners who invested in solar panels within the VAT scope.
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