Flat-rate taxation according to § 19 (2) UStG
August 15, 2009 | 25,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Background:
Apartment rented to private individual; self-occupied house with a photovoltaic system on the roof for electricity feed-in; waiver of the application of the small business regulation (§ 19 para. 1 UStG) for the purpose of input tax deduction regarding the acquisition costs of the photovoltaic system.
Question:
Must value added tax also be added to the rent (see § 4 No. 12a UStG)? If yes, what is the consequence if the value added tax cannot be passed on to the tenant (private individual)?
Dear client,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your efforts in a first consultation as follows:
You own 2 properties:
a) You rent out a condominium to a private individual
b) You own a house exclusively for your own use, on the roof of which you have installed a photovoltaic system.
From a VAT perspective, the rental of the condominium and the operation of the photovoltaic system are part of your overall business, so VAT-wise there is only ONE business. However, a business can generate taxable income and/or tax-exempt income. In your case, regardless of the photovoltaic system, you continue to generate tax-exempt income from the rental. As a result, you do not have to charge VAT on the rental income. There is no change in the rental income.
I hope my explanations have been helpful to you.
Best regards,
Ulrich Stiller
Tax Advisor
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