- The delivery of electricity generated by a landlord through a photovoltaic system to tenants for a fee is considered a separate taxable service
- This service allows for input tax deduction from input services
- The Federal Fiscal Court (BFH) ruled on this matter on 17.07.2024, distinguishing it from a previous ruling on input tax deduction for the delivery of a heating system
- The case involved a landlord who installed photovoltaic systems on rental properties and provided electricity to tenants through a battery storage system
- Excess electricity was sold to a company, while additional electricity needed by tenants was sourced from external companies and sold to tenants with a markup
- The landlord had separate meters for total electricity production and direct supply to tenants, and billed tenants based on individual consumption
- The BFH agreed with the landlord that electricity generation and delivery to tenants and rental services are separate and independent services
- The ruling emphasized that a single economic service should not be artificially divided, and that services closely linked to each other should be considered a single, inseparable economic service
Source: nwb-experten-blog.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.
