VAT Rates for Wooden vs. Agricultural Biomass Pellets: Differentiation Based on Material and Use

• Wooden pellets (beech, oak, spruce) used exclusively as heating fuel are subject to a reduced VAT rate of 11%, if the buyer provides a self-declaration.
• If no self-declaration is provided for heating use, wooden pellets are taxed at the standard VAT rate of 21%.
• Pellets made from agricultural biomass (straw, corn stalks, etc.) are always subject to the standard VAT rate of 21%.
• The reduced VAT rate applies only to wooden pellets and related by-products, not to other biomass materials.
• The fiscal regime aims to promote wooden pellets as renewable energy by offering a lower VAT rate, based on material and declared use.

Source: teaha.ro

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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