Austria to abolish VAT on photovoltaic systems below 35 kW in 2024

From 2024, Austria will no longer impose VAT on private photovoltaic systems. Austria's federal photovoltaic association (PV) welcomed the government's decision, having been calling for it to be reduced to zero for years. Climate Protection Minister Leonore Gewessler announced the measures as part of his economic stimulus measures.

Herbert Paierl, Chairman of the Board of Directors of Austrian Photovoltaics, said: “As an association we have long called for this measure and are pleased that small-scale PV expansion will be accelerated next year. This is the right step at the right time, Because the industry is currently experiencing a decline in photovoltaic demand. "The reduction in bureaucracy had the opposite effect," Paierl said.

The VAT reduction to 0% will take effect in early 2024 and will apply to all PV systems with an output of 35 kW. It also includes parts and components. As PV Austria explains, the measure is intended to replace federal funding for a period of two years.

Photovoltaics Austria points out that this is also important for the economy, which is why the adoption of the Modern Electronic Economy Act (ElWG) and the expansion of the grid are necessary. "Only within the conditions of grid expansion and a modern legal framework will the photovoltaic systems of the future be able to truly contribute to the energy transition," said Paierl.

In Germany, the VAT rate for private photovoltaic systems has been reduced to zero this year. At the same time, the German government also announced that this measure will be permanent. This includes reducing VAT on the supply and installation of photovoltaic systems to zero from 1 January 2023.

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