- Reduced tax rate applies to the delivery of wood chips as firewood.
- Amendment to number 48 letter a of Annex 2 to the Value Added Tax Act by the Annual Tax Act 2024.
- The Federal Ministry of Finance clarified the application of the reduced tax rate to wood chips.
- The amendment aligns national law with European Court of Justice and Federal Fiscal Court rulings.
- Wood chips are considered firewood if classified under tariff position 4401.
- They must be intended and suitable for burning based on objective characteristics at the time of delivery.
- All types of thermal utilization are covered, such as electricity production or heating.
- Assessment criteria include packaging type and a predetermined moisture level.
- Wood chips with a moisture content below 25 percent are deemed suitable for burning.
- The reduced tax rate may still apply to wood chips with 25 percent moisture or more if no further processing is needed.
Source: bundesfinanzministerium.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.
