The Chamber of Fiscal Consultants asks for finances to return to a circulation, and the VAT rate at the photovoltaic systems batteries is 9%

The Ministry of Finance has sent a circular according to which storage batteries for other photovoltaic systems than off-grid, such as on-grid or hybrids, does not benefit from applying the reduced VAT rate of 9% in the case of a separate delivery and in the case of a single delivery within an installation kit. Thus, they are subject to the standard 19%VAT rate.

“Although we agree that, sold separately, apart from an installation kit, the storage batteries cannot be marketed using the reduced VAT rate, However, we cannot be of the same opinion, however, with the position of the Ministry of Finance expressed in the circular no. 836664/21.02.2025 For the situation in which the batteries and the installation kit are sold together, the batteries essentially have an accessory purpose for the customer, these allowing it a better use of the main product ”says Mariana Vizoli, former director and Secretary of State in the Ministry of Finance, currently vice -president of the Chamber of Fiscal Consultants.

For the given situation it is critical to observe whether some transaction elements can be regarded as an end in itself, being indissoluble, while others are accessory, and they can be viewed either generally or in segments, as unique complex operations. In opposition to this optics, there would be only the interpretation that operations represent a suite of independent, separable transactions.

“I believe that it cannot be justified, in relation to the economic reality, the practice and European jurisprudence in the field, the different treatment applied for the off-grid systems, where the batteries are considered by the circular MF an absolutely necessary component of the system, by the nature of its functioning, and in contrast, in the case of the photovoltaic on-grid or hybrid systems, according to the recent position of the Ministry of Finance. Secondary, optional component, without a determining utility ”said Doru Dudaș, former vice -president of ANAF and general manager in the Ministry of Finance, current chairman of the CCF Fiscal Committee.

In reality, however, batteries are no longer a simple dispensable element of a photovoltaic system, but become essential components for optimizing the use of energy produced.

Their integration into on-grid and hybrid systems contribute to:

• Increased energy self -consumption and reduction in network injection, which optimizes renewable energy use and reduces pressure on the national network.
• Ensuring the continuity of energy in the case of network interruptions, having a crucial role in maintaining the stability of energy supply.
• Reducing the impact of price variations by storing energy during overproduction periods and its use in peak hours, a measure that supports energy sustainability.

The fact that they are no longer a dispensable element is also highlighted by the favorite option of consumers to purchase batteries when purchasing on-grid / hybrid systems (from the figures communicated by the economic operators this type of acquisition being located at 80-90% of the situations).

Last but not least, we emphasize that including the Green Photovoltaic House program 2024 (managed by the Administration of the Environment Fund, an institution subordinated to the Ministry of Environment, Waters and Forests in Romania) also finances the purchase of batteries, provided they are an integral part of a fully connected photovoltaic system (on-grid or hybrid)).

The Chamber of Fiscal Consultants has sent an address to the Ministry of Finance in which it proposes a circular rectification, so that it is stipulated that the transaction that involves the delivery of a complete photovoltaic system that includes batteries for storing the energy generated, even if the installed system will be on-grid or hybrid type, will be eligible for its reduced quota.

How is legislation in other European countries

In many other European jurisdictions, batteries are treated as an integral part of photovoltaic systems and benefit from the same tax facilities.

In Germany, starting with January 1, 2023, a 0% VAT rate is applied for the delivery and installation of photovoltaic systems with a capacity of up to 30 kW, intended for residential buildings, public or used for public utility purposes. This reduced quota[appliestoboththeessentialcomponentsofthephotovoltaicsystemandthenecessaryaccessoriesincludingtheenergystoragebatteries[seaplicăatâtcomponenteloresențialealesistemuluifotovoltaiccâtșiaccesoriilornecesareinclusivbateriilordestocareaenergiei

In the Netherlands, starting with January 1, 2023, a 0% VAT share has been introduced for the delivery and installation of solar panels on or near private homes and residential buildings. The batteries purchased and installed simultaneously with the solar panels can benefit from the reduced share, but for the purchased batteries the standard VAT rate is applied.

Austria has implemented a reduced VAT rate of 0% for the delivery and installation of solar panels starting January 1, 2024. Regarding the energy storage batteries, they benefit from the reduced VAT rate when purchased with the photovoltaic system. For separately purchased batteries, the standard VAT rate is applied.

In all these jurisdictions there is no distinction between the types of systems (off-grid, on-grid or hybrids). However, applying the reduced VAT rate for batteries is conditioned by their integration in the delivery and installation of a complete photovoltaic system.

Thus, the batteries purchased and installed together with the photovoltaic system benefit from the reduced VAT rate, regardless of the type of system. For batteries purchased separately or subsequently added, the standard VAT rate is applied.

See the entire address sent by the Chamber of Fiscal Consultants to the Ministry of Finance