According to the BMF the BFH has ruled on 21 April 2022, V R 2/22 (V R 6/18), subsequent to the CJEU ruling of 3 February 2022 – C-515/20 – B, that woodchips, according to § 12 (2) no. 1 UStG in conjunction with Annex 2 no. 48 (a) of the UStG, are subject to the reduced VAT rate if they are deemed to be firewood if interpreted in compliance with Art. 122 of the VAT Directive within the meaning of the description of goods in Annex 2 no.48 (a) to the UStG. The lack of the customs tariff requirements necessary for this presents no obstacle if the woodchips and the customs tariff requirements needed to be fulfilled to indicate firewood are interchangeable from the point of view of the average consumer.
Source KPMG
