Solar power generating systems and related renewable energy devices are taxable at 5% GST under Notification No. The Annual Tax Act 2022 of December 16, 2022 introduced an income tax exemption applicable from January 1, 2022 (cf. 72 in conjunction with § 52 Para. 4 Sentence 27 of the German Income Tax Act (EStG)) for income from the operation of certain photovoltaic systems and a zero VAT rate. Solar VAT rates Europe 2026: reduced rates, exemptions, and recent changes. Compare VAT on solar installations across EU member states. Solar VAT rates in Europe 2026: Germany 0% (permanent), UK 0% (through 2027), France 10%, Italy 10%, Spain 10%, Netherlands 0% (temporary), Poland 8% (under 50. As of September 22, 2025, most solar products, such as panels, modules and water heaters, attract 5% GST, making correct Harmonised System of Nomenclature (HSN) classification essential for accurate invoicing and compliance. Key solar HSN codes include 8541 for modules and 8504 for inverters, both. The legislation left many questions about invoicing and input tax deduction unanswered and so, on 16. 2023, a Federal Ministry of Finance (Bundesministerium der Finanzen, BMF) draft circular was published. BOS & Service includes 18% tax: Electrical fittings, CCTV, plumbing, civil work, transportation, Tin shed, structure, Land leveling, LA, earthing, ACDB, DCDB, etc.
