Roof repair after installation of a photovoltaic system

No input tax deduction is possible from the costs of a necessary roof repair after installation of a photovoltaic system.

If the installation of a photovoltaic system results in roof damage, the tax treatment of the subsequent repair is not entirely straightforward. With regard to sales tax, the Nuremberg Fiscal Court has ruled that no input tax deduction is possible from the corresponding craftsman services. The court follows the argument of the tax office that the share of business use of the repairs is to be assessed according to the total use of the building, and since this is less than 10 %, an input tax deduction cannot be considered.

However, the ruling is problematic in several respects. These include the fact that the law only regulates an exclusion of input tax deduction for items used predominantly for non-business purposes, but not for other services such as in the case of a pure repair. In addition, a different apportionment standard than the sales key for the building as a whole is also conceivable. Therefore, the Federal Fiscal Court will have to look at the case again in the appeal.