Tax regulation mechanism (Law on the Value Added Tax)
The value added tax shall be imposed on the following economic activities: supply of goods and services, including home consumption on the national level (§ 5 par. 1 Law on the Value Added Tax). For the supply of biomass and biogas for household needs, the tax rate is reduced (§ 42 par. 11, 12 Law on the Value Added Tax).
Only biomass and biogas are eligible for the tax allowance.
The tax rate for the supply of biomass and biogas is reduced from 21% to 12% (§ 41 par. 1 Law on the Value Added Tax).
The Law on the Value Added Tax obliges all companies and persons that perform economic activities and are registered for VAT with the State Revenue Service (§ 3 par. 1 Law on Value Added Tax). Persons supplying biomass and biogas for household needs have to pay only a reduced amount of VAT.
Taxable companies that have performed taxable transactions exceeding the value of € 50 000 during the previous tax year must inform the authorities on their taxable transactions on a monthly basis. For companies with sales of less than € 50,000, taxes are raised quarterly (§ 119, par. 2 Law on the Value Added Tax)
State Revenue Service (§ 118 Law on the Value Added Tax)
Distribution of costs
The costs of tax relief are borne by the state.