- The financial administration adopts BFH principles on VAT treatment of direct consumption of electricity and free heat supply from CHP plants.
- Payment of a KWK surcharge for decentralized consumed electricity does not constitute a delivery for VAT purposes.
- Electricity generated and consumed by the operator is not delivered to or returned by the grid operator.
- Direct consumption in KWK plants does not lead to delivery to the grid operator.
- BFH decided that the VAT base for free heat supply from CHP or biogas plants is determined by proportional self-costs if no market price is available.
- These views are adopted by the financial administration in a letter dated 31.03.2025 in section 2.5 UStAE.
- BMF principles apply to all open cases but previous views can be used for transactions before 01.01.2026 without objection.
Source: ebnerstolz.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
