Romania – Change in VAT rate in the wood and energy industries

From the 11th July 2023, the Romanian Law no. 216/2023 introduced the following changes in the application of the 5% VAT rate:

• Wood industry: the reduced 5% VAT rate is applicable to the supply of sawdust, waste, scrap wood, as well as their usage as heating fuel.
• Energy industry: the 5% VAT rate applies to heat pumps and to the delivery and installation of photovoltaic panels for homes and building of the public administration, but not for commercial companies. It also specifies that for the photovoltaic panels, the reduced rate applies also to all necessary components purchased separately for this purpose.