Law 216/2023 amending and supplementing Law 227/2015 on the Fiscal Code, published in the Official Gazette, Part I no. 633 of July 11th, 2023, entered into force on July 14th, 2023.

The main changes/completions to the Fiscal Code:

1. Regarding the reduced VAT rate (5%) for the delivery of firewood to natural persons

1.1 The reduced VAT rate (5%) is applied for the delivery of firewood to natural persons, in the form of trunks, stumps, sticks, branches or in similar forms, which fall under CN codes 4401 11 00 and 4401 12 00, and sawdust, waste and scrap wood agglomerated in the form of wood pellets, wood briquettes or in similar forms, which fall under CN codes 4401 31 00 and 4401 32 00; the delivery for use as heating fuel of sawdust, waste and non-agglomerated wood scraps, which fall under CN codes 4401 41 00 and 4401 49 00, carried out to natural persons as end users, based on an affidavit made available for the supplier;

News:

• The reduced rate is also extended for the delivery of sawdust, waste and agglomerated wood scraps in the form of wood pellets, wood briquettes or in similar forms, which fall under CN codes 4401 31 00 and 4401 32 00; the delivery for use as heating fuel of sawdust, waste and non-agglomerated wood scraps, which fall under CN codes 4401 41 00 and 4401 49 00.

• The "affidavit" of natural persons as end users is introduced, which must be made available to the supplier.

1.2 The reduced VAT rate (5%) is applied for the delivery to legal persons or other entities, regardless of their legal form of organization, including schools, hospitals, medical dispensaries and social assistance units, of firewood, in the form of trunks, logs, stumps, branches or in similar forms, falling within CN codes 4401 11 00 and 4401 12 00, and of sawdust, wood waste and scrap, agglomerated in the form of wood pellets, wood briquettes or in similar form, falling under CN codes 4401 31 00 and 4401 32 00; the delivery for use as heating fuel of sawdust, waste and non-agglomerated wood scraps, which fall under CN codes 4401 41 00 and 4401 49 00, made to legal persons or other entities, regardless of their legal form of organization, including schools, hospitals, medical dispensaries and social assistance units, as end users, based on an affidavit made available to the supplier;

News:

• The reduced rate is also extended for the delivery of sawdust, waste and agglomerated wood scraps in the form of wood pellets, wood briquettes or in similar forms, which fall under CN codes 4401 31 00 and 4401 32 00; the delivery for use as heating fuel of sawdust, waste and non-agglomerated wood scraps, which fall under CN codes 4401 41 00 and 4401 49 00.

• Enter the "declaration on own responsibility" of legal entities as end users, which must be made available to the supplier.

• The "affidavit" of legal persons as end users is introduced, which must be made available to the supplier.

2. Regarding the reduced rate of VAT (5%) on the delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency heating systems

2.1 The reduced rate of VAT (5%) applies to the delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency, low-emission heating systems that fall within the reference values for particle emissions established in Annex V to Regulation (EU) 2015/1.189 of the Commission of April 28th, 2015 implementing Directive 2009/125/EC of the European Parliament and of the Council regarding the ecological design requirements applicable to solid fuel boilers and in annex V to Commission Regulation (EU) 2015/1.185 of 24th April 2015 implementing Directive 2009/125/EC of the European Parliament and of the Council as regards the ecological design requirements applicable to fuel-fired local heating appliances solid and which have been assigned an energy label of the European Union to demonstrate the meeting of the criterion mentioned in art. 7 para. (2) of Regulation (EU) 2017/1.369 of the European Parliament and of the Council of July 4th, 2017, establishing a framework for energy labeling and repealing Directive 2010/30/EU, intended for homes, including installation kits, such as and all necessary components purchased separately;

New:

• extension of the reduced VAT rate also for the delivery of heat pumps and other high-efficiency, low-emission heating systems that fall within the reference values for particle emissions established in Annex V to Regulation (EU) 2015/1.189, as well as all the necessary components purchased separately;

2.2 The reduced rate of VAT (5%) applies to the delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency, low-emission heating systems that fall within the reference values for particle emissions set in Annex V to Regulation (EU) 2015/1.189 of the Commission and in Annex V to Regulation (EU) 2015/1.185 of the Commission and which have been assigned an energy label of the European Union to demonstrate the meeting of the criterion mentioned in art. 7 para. (2) of Regulation (EU) 2017/1.369 of the European Parliament and of the Council, including installation kits, as well as all necessary components purchased separately, intended for central or local public administration buildings, buildings of entities under their coordination/subordination, with the exception of commercial companies;

New:

• extension of the reduced VAT rate also for the delivery of heat pumps and other high-efficiency, low-emission heating systems that fall within the reference values for particle emissions established in Annex V to Regulation (EU) 2015/1.189, as well as all the necessary components purchased separately;

2.3 The reduced VAT rate (5%) is applied for the delivery and/or installation of components for the repair and/or expansion of the systems provided for in point 2.1 and point 2.2 (new provision);

2.4 The reduced VAT rate (5%) is applied for the delivery of the systems provided for in point 2.1 and point 2.2 as a component part of construction deliveries, as well as the delivery and installation of the systems provided for in point 2.1 and 2.2 as extra options for the delivery of a construction, for the recipients provided for in points 2.1 and 2.2.

3. The following phrases are defined: "high efficiency", "installation kits", "photovoltaic panel kit", "heat pump kit", "housing", etc.

IMPORTANT

• In order to benefit from provisions 2.2, 2.3 and 2.4, legal persons buyers have the obligation to sign a declaration at the supplier's disposal according to the model provided in annex no. 1 to this law.
• In the case of natural person buyers, suppliers can apply the reduced rate according to the provisions of point 2.1, 2.3 and 2.4 based on the buyer's signature of receipt of the products, applied to the invoice that expressly mentions the address of the home where the products are installed, and otherwise being obliged to submit an affidavit according to the model provided in annex no. 2 to this law.

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