Additional tax reduction: 6 months on gas and electricity VAT

Three questions on the Value Added Tax 

Does everyone pay the same percentage of Value Added Tax (hereinafter VAT) on the same product?

Yes, it is an indirect tax. This means that VAT does not take into account the income of the payer. Therefore, it disproportionately harms people with less resources.

2. To whom is this tax paid?

To the central Administration, which sends a percentage to the Autonomous Communities.

3. What I am paying with VAT tax?

The fact of: consuming goods or contracting services (including water, gas and electricity supplies).  

Three additional measures to diminuish the tax burden

- Reduction of the VAT applied to the electricity bill from 10% to 5%, provided that the power is equal to or less than 10 kilowatts.

- Reduction of the VAT applied to gas, the other supply linked to energy, from 21 to 5%.

- Freezing of the butane cylinder 19.55 €.

 All of the above will be in force until June 2023.

These governmental decisions are in addition to the already approved Royal Decree Laws 19/2022 and 20/2022 (hereinafter RDL 19/2022 and RDL 20/2022):

Know RDL19/2022 now and access here to RDL 2022. 

We hope you will find the information useful.