Doctrine by topic · DGT Observatory

Biomass: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 15 rulings · 2014–2026

Current position

Deliveries of wood intended directly to be fuel or for the manufacture of chips, briquettes, or pellets are taxed at the 10% rate according to Royal Decree-Law 7/2026. Briquettes, pellets, and firewood are distinguished from other products such as almond shells or olive stones, which do not benefit from reduced rates. Heating services are taxed at 21%, unless it is a delivery of goods in one's own name.

The DGT's position has moved from applying a 5% rate for briquettes, pellets, and wood (V2119-22) to establishing a 10% rate for wood intended for fuel or the manufacture of derived products (V5242-26). The exclusion of products such as almond shells from the scope of reduced rates has been maintained (V2309-22, V0121-23), and it has been specified that heating services do not qualify for the reduction (V2022-23).

Turning points

  1. V2119-22

    Introduces the application of the 5% rate for briquettes, pellets, and firewood by analogy due to the lack of express provision in the IVA (VAT) Law.

  2. V5242-26

    Modifies the rate applicable to deliveries of wood intended for fuel or the manufacture of chips, briquettes, or pellets, setting it at 10%.

Analysis based on 13 of 15 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

15
V1015-26 6 May 2026

10% VAT applies to wood waste for fuel or pellet production

SG de Impuestos sobre el Consumo
tipo impositivo reducidoderivados de la maderabiomasaproductos energéticosámbito objetivo LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V0121-23 3 Feb 2023

Almond shells ineligible for reduced 5% VAT rate

SG de Impuestos sobre el Consumo
tipo impositivo reducidobiomasaámbito objetivoentregas de bienesempresario LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V0334-14 11 Feb 2014

Biomass boilers excluded from the VAT equivalence surcharge regime

SG de Impuestos sobre el Consumo
recargo de equivalenciacomerciante minoristamateriales de construcciónrégimen generalbiomasa LIVA — Ley 37/1992 del IVA art. 148LIVA — Ley 37/1992 del IVA art. 149
Affects CompanyExpat · Non-residentIndividual

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