Temporary zero VAT rate for photovoltaic modules

With the 2024 Budget Accompanying Act, a temporary zero VAT rate (which constitutes a VAT exemption without excluding the right to deduct input tax) was introduced in § 28 paras. 62 and 63 of the Austrian VAT Act (UStG 1994) for the supply, intra-Community acquisition, import, and installation of photovoltaic modules.

The supply, intra-Community acquisition, import, or installation must be made to or on behalf of the operator of the photovoltaic system.
The system’s peak output must not exceed 35 kW (peak).
The photovoltaic system must be operated on or near buildings used for residential purposes, or by public law entities, or by charitable, benevolent, or religious organizations.
No application for an investment grant must have been submitted for the relevant photovoltaic system before December 31, 2023.

The zero VAT rate applies only to deliveries and installations of photovoltaic modules carried out after December 31, 2023 and before January 1, 2026. Thus, the zero VAT rate is limited to a period of two years.