ᐅ Photovoltaic Roof System: Full Feed-In, Legal Issues...

Hello,

we are currently looking for a construction company.
By chance, we were offered a house that might be interesting.
The house has a photovoltaic system on the roof.
It dates from 2010 and feeds all the electricity into the grid. For this, a payment of XXX.XX € is received.

Now I am wondering how this is handled from a legal perspective.
Does this income need to be taxed?
Is it necessary to register a small business for this?

Basically, yes.

The question is how to handle the purchase, as it can be made with or without VAT.
Try searching for: "Geschäftsveräußerung im Ganzen" photovoltaic

I would base this on whether you qualify as a small business for VAT purposes or not, unless the feed-in conditions explicitly state that you are not allowed to be a small business.

Small business: no. Taxation: yes. Full feed-in: no more than 100% is reimbursed, but depending on the age of the system, it likely does not fall under the new unfavorable regulations. I recommend taking a closer look here in the forum. In 2010, I believe the feed-in tariff was still around 40 cents per kWh, which is excellent; I’m currently getting only about 14 cents 🙁.

For me, self-consumption is worthwhile; at 40 cents per kWh, self-consumption was not an issue. But who knows how long it will take until electricity prices exceed that again 😉

Elina schrieb:
No small business.

This statement is too general. It depends on the size of the photovoltaic system and the intention to generate profit. Since the original poster does not specify the size of the system or the amount of money earned, no one can make a judgement.

In some cases, it might even be advisable to register a business, even if not mandatory. However, this carries the risk of being subject to the Chamber of Commerce (IHK) obligations.

Elina schrieb:
Taxable, yes.

This statement is also too general. What exactly needs to be taxed? Income tax, sales tax (VAT), electricity tax, tobacco tax...?

Income tax applies if there is an intention to generate profit (see above).
Sales tax (VAT) applies unless opting for the small business scheme (annual revenue in the first year below 17,500 euros). Under the small business regulation, no sales tax may be charged to customers. However, the small business must still submit a VAT return reporting their revenues.