- Reduced VAT rate of 10% applies to imported oils used for cogeneration, regardless of excise duty treatment.
- This principle was established by the Puglia Regional Tax Court in a case involving imported palm oil used in a cogeneration plant.
- The company imported palm oil for use in a cogeneration plant to produce electricity and heat.
- For excise duty purposes, oil used for cogeneration is considered partly for electricity production (subsidized) and partly for heat production (non-subsidized).
- This allocation is based on fixed coefficients that determine a theoretical amount of oil used for heat production.
- For VAT purposes, the relevant provision does not specify rules for cogeneration, only requiring verification of:
- The product is a mineral oil or a substitute for a fuel oil.
- The product is used to generate electricity directly or indirectly.
- The power plant has a capacity of at least 1 kW.
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.
