Extension of Non-Objection Regulation for VAT Rate on Deliveries of Wood Chips

• The German Federal Ministry of Finance (BMF) has extended a non-objection regulation regarding the delivery of wood chips.
• The BMF has clarified that a reduced tax rate applies to the delivery of wood chips, based on a decision by the Federal Fiscal Court (BFH) and a ruling by the European Court of Justice (ECJ).
• The BFH ruled that wood chips are subject to a reduced tax rate if they can be considered firewood according to the description in the tax law.
• The BMF has stated that the BFH ruling only applies to the delivery of wood chips, unless it is evident from the packaging or quantity that they are not intended for burning.
• The BMF emphasizes that the reference to the customs tariff in the tax law is a valid criterion for determining the tax rate.
• A non-objection regulation has been extended until December 31, 2023, allowing businesses to apply the standard tax rate for services provided before that date.

Source: haufe.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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