Spain will lower VAT on electricity from 10% to 5%

Deepak Gupta June 22, 2022
Updated 2022/06/22 at 9:41 AM

Spain has new means to lower the price of electricity! Given the current situation, caused by a pandemic and a war, countries are forced to redefine their strategies and policies. The values ​​of consumables and energy are getting higher and governments can “move” taxes.

Pedro SanchezPresident of the Spanish Government, wants to protect its citizens from the effects of the war in Ukraine and will lower VAT on electricity from 10% to 5%.

Spain with 5% VAT on electricity. Portugal with 13%

It was during a speech in the Spanish Parliament that Pedro Sánchez showed his intention to lower VAT on electricity from 10% to 5%. Remember that a year ago Spain had already lowered the tax from 21% to 10%.

In Portugal, since December 1, 2020, the VAT rate is 13% on monthly consumption up to a limit of 100 kWh for contracted powers of up to 6.9 kVA, or 150 kWh in the case of large families.

Spain will lower VAT on electricity from 10% to 5%

In a post on the social network Twitter, Pedro Sánchez says that "A year ago we lowered VAT on electricity from 21% to 10%. In the next Council of Ministers we will reduce [o IVA da eletricidade] from 10% to 5% to continue to protect citizens from the effects of war [na Ucrânia]”

The Spanish president added that “We hope that all groups [parlamentares] support the measure in favor of families, companies and industries in the country”.

With an inflation rate of 8.7% recorded in May, neighboring Spain managed, together with Portugal, the so-called Iberian exception in the mechanism for setting prices for electricity, which is no longer coupled with the most expensive fuel on the market today: the natural gas.

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