10% VAT Applies to Wood Chips and Sawdust Sales Regardless of Buyer’s Intended Use

• The Italian Revenue Agency confirmed that wood shavings and sawdust are subject to the reduced 10% VAT rate, regardless of how the buyer uses them, including as animal bedding.
• This clarification resolves doubts raised by a previous resolution (n. 59/2024), which had stated that animal bedding is subject to the standard 22% VAT rate based on its intended use.
• The Agency now affirms that the objective characteristics of the product, not its intended use, determine the applicable VAT rate.
• Only if the product is processed or packaged specifically as animal bedding does its VAT classification potentially change.
• The recent ruling (interpello n. 315/2025) definitively establishes that untreated wood shavings and sawdust retain the 10% VAT rate, regardless of their end use.

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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