- The BFH ruled that wood chips qualify for a reduced tax rate if they are considered firewood under specific legal interpretations.
- A BMF letter clarified that this applies only to wood chips intended for burning, based on their presentation or sale quantity.
- The 2024 tax law amendment confirmed that wood chips classified under tariff position 4401 are eligible for the reduced tax rate.
- Wood chips are considered firewood if they are classified under tariff position 4401 and are objectively intended for burning.
- Key factors include presentation, a predetermined drying level, and use for heating spaces.
- A moisture content below 25 percent indicates the wood chips are intended for burning.
- The actual use by the recipient is irrelevant.
- The quantity sold is not a determining factor for classification as firewood.
- The BFH ruling does not apply to other goods not listed in the relevant tax law annex.
- These principles apply to transactions after December 5, 2024.
Source: datenbank.nwb.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.
