Deadline of 31st December for 10% VAT on pellets, uncertainties for agricultural producers

• The law of the 2023 budget establishes a 10% VAT rate for pellet sales, but only for the year 2023.
• If the exemption is not extended, the VAT rate for pellet sales will return to the ordinary rate of 22% from January 1, 2024.
• This special provision for 2023 is a derogation from the usual VAT rate for wood.
• The usual VAT rate for wood is 10% for firewood but excludes pellets.
• The definition of “firewood” can include pellets based on a ruling by the Court of Justice of the EU.
• The reduced VAT rate applies to any type of wood intended solely for combustion.
• There is currently no internal extension of the exemption.

Source: eutekne.info

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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