- Abolishing VAT Exemption for Photovoltaic Systems: The bill includes the termination of the VAT exemption for photovoltaic systems, which was initially set to be zero-rated from January 1, 2024, to December 31, 2025. This exemption will now end early on April 1, 2025, with the government anticipating an additional revenue of around EUR 175 million in 2025.
- Impact on Revenue Generation: The decision to end the VAT exemption for photovoltaic systems reflects a broader strategy within the Budget Restructuring Measures Bill aimed at reducing the budget deficit by increasing tax revenues through various measures.
- Overall Tax Strategy: The bill not only focuses on VAT-related changes but also includes extending the top income tax rate and other tax increases (such as on tobacco and banking). These measures collectively aim to generate significant revenue to address the budget deficit while altering the VAT landscape for renewable energy investments.
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