Part of government measures to face the energy crisis (1) - Council of Ministers on 4 February 2022
The first royal decree releases a framework for the temporary reduction of the VAT rate for the supply of electricity from 21 to 6%. The emergency measure will be valid from 1 March 2022 for four months. However, for technical and organisational reasons.
The contracts that are interested by the measure are residential and non-professional contracts, hence exclusively contracts designed for domestic use of energy.
Furthermore, the measure is extended to the energy suppliers of the energy on which the VAT cut is applied. These agents bear the 21% VAT upstream and, if not included in the measure, would generally be in a situation of VAT tax credit, given the VAT rate cut applied on residential contracts.