VATupdate

European Union: Overview reduced VAT rates for water, electricty, gas

Status: September 29, 2021

Source Taxes in Europe Database

EU: Reduced VAT rates for Water, Electricity and Gas (pdf version)

Rate Category Comments
Austria 10 Supply of water
Austria 19 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) Jungholz, Mittelberg
Belgium 6 Supply of water Royal Decree N°20, Table A, category XIII
Cyprus 5 Supply of water
Czechia 10 Supply of water Drinking water. Treatment and distribution services of water through mains. Collection and treatment of wastewater and sewage.
Czechia 10 Supply of water Drinking water. Treatment and distribution services of water through mains. Collection and treatment of wastewater and sewage.
Czechia 10 Supply of water Drinking water. Treatment and distribution services of water through mains. Collection and treatment of wastewater and sewage.
Czechia 10 Supply of district heating Heat and cooling.
Germany 7 Supply of water No reduced rate for bottled water, healing water and steam
Germany 7 Supply of water VAT – Import – No reduced rate for bottled water, healing water and steam
Greece 6 Supply of natural gas Reduced rate applies only on supply of natural gas of tariff heading 2711
Greece 6 Supply of electricity
Greece 17 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) The Aegean Islands of Leros, Lesvos, Kos, Samos and Chios (L. 4811/2021 and Ministerial Decision A 1150/2021)
Greece 13 Supply of water
Spain 10 Supply of water
Spain 10 Supply of electricity Reduced rate applies (from 26 June to 31 december 2021) to: contract holders under 10kW, and vulnerable households entitled to social tariffs
France 5,5 Supply of electricity For the subscription part of the bill (article 278-0 bis B of the general tax code)
France 5,5 Supply of electricity For the subscription part of the bill (article 278-0 bis B of the general tax code)
France 5,5 Supply of electricity For the subscription part of the bill (article 278-0 bis B of the general tax code)
France 5,5 Supply of natural gas For the subscription part of the bill (article 278-0 bis B of the general tax code)
France 5,5 Supply of district heating For the subscription part of the bill. When produced at least 50% from biomass, geothermal, solar thermal energy, waste and recovered energy (article 278-0 bis B of the general tax code)
France 10 Supply of water Article 279 b 2° of the general tax code
France 8,5 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) The standard VAT rate in Martinique, Guadeloupe and Réunion is 8.5%. The reduced rate is 2.1%.
France 0,9 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) For Corsica: 0.9% on sales of live animals to non-sujected to VAT entities, and on the first performances or circus.
France 1,05 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) The super reduced rate in Martinique, Guadeloupe and Réunion is 1.05% (for the press).
France 13 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) For Corsica: rate of 13% on oil products; 10% on construction works, sales on farm machinery, sales on eaten in products, etc.; 2.1% (reduced rate).
Croatia 13 Supply of water Applies to supply of water, other than water marketed in bottles or other packaging, in terms of public water supply and public drainage under special regulation.
Croatia 13 Supply of electricity Applies to delivery of electricity towards other supplier or end-user, including fees related to the delivery.
Hungary 5 Supply of district heating
Ireland 13,5 Supply of natural gas Reduced rate applies to supply of natural gas under Article 118 and not Article 102.
Ireland 13,5 Supply of electricity Reduced rate applies to supply of electricity under Article 118 and not Article 102.
Ireland 13,5 Supply of district heating
Italy 10 Supply of water Water. 2201 90 excluding ice or snow. For mineral waters and beer the applicable rate is the ordinary rate
Italy 10 Supply of natural gas Gas for use by mining, agricultural and manufacturing companies including printing, publishing and similar businesses; gas, methane gas and liquefied petroleum gas, intended to be injected directly into the pipes of the distribution networks to be subsequently supplied, or destined to companies that use them for the production of electricity. 2705 and 2711 gas for the uses indicated above.
Italy 10 Supply of natural gas Gas for use by mining, agricultural and manufacturing companies including printing, publishing and similar businesses; gas, methane gas and liquefied petroleum gas, intended to be injected directly into the pipes of the distribution networks to be subsequently supplied, or destined to companies that use them for the production of electricity. 2705 and 2711 gas for the uses indicated above.
Italy 10 Supply of electricity Electricity for household use; electricity for use by mining, agricultural and manufacturing companies including printing, publishing and similar businesses; electricity for the operation of irrigation, lifting and drainage systems, used by reclamation and irrigation consortia; electricity supplied to wholesale customers referred to in Article 2, paragraph 5, of Legislative Decree No 79. 2716 electricity for the uses indicated above.
Italy 10 Supply of electricity Services & supplies of equipment and materials relating to the supply of thermal energy for domestic use through public district heating networks or as part of the energy service contract, as defined in Interm Decree Art. 11, par. 1, of regulation referred to in Pres. Decree No 412/1993, and subsequent amendments; it includes supplies of energy produced from renewable sources or high efficiency cogeneration plants. Ordinary rate is applied to supplies of energy from other sources.
Italy 10 Supply of natural gas Supply of methane gas used for combustion for civil uses limited to 480 cubic meters per year; supply, via distribution networks, of liquefied petroleum gases for domestic purposes for cooking food and for the production of hot water, liquefied petroleum gas contained by or intended to be placed in cylinders from 10 to 20 kg at any stage of marketing.
Italy 10 Supply of district heating Connection services to district heating networks carried out in compliance with current legislation on energy saving
Lithuania 9 Supply of district heating Applies to the district heating energy supplied to residential premises
Lithuania 9 Supply of water Applies to the hot water or cold water for preparing of hot water, supplied to residential premises
Luxembourg 3 Supply of water Article 114 of 2006/112/EC
Luxembourg 3 Supply of water Article 114 of 2006/112/EC
Luxembourg 3 Supply of water Article 114 of 2006/112/EC
Luxembourg 8 Supply of natural gas
Luxembourg 8 Supply of natural gas
Luxembourg 8 Supply of electricity
Luxembourg 8 Supply of district heating
Latvia 12 Supply of district heating Thermal energy. Please refer to the VAT Law (Section 42, Paragraph twelve) for more detailed information. URL: https://likumi.lv/ta/en/en/id/253451
Latvia 12 Supply of district heating Firewood. Please refer to the VAT Law (Section 42, Paragraph eleven) for more detailed information. URL: https://likumi.lv/ta/en/en/id/253451
Malta 5 Supply of electricity Supply of electricity in accordance with Article 102 of Council Directive 2006/112/EC
Malta Exempted Supply of water The exemption refers to the supply of water services by a public authority.
Netherlands 9 Supply of water Tabel I prov. a.28: including water supplied via the public mains network; distilled water; warm water; and ‘other water’ (surface water not suitable for human consumption but usable for non-consumptive purposes such as rinsing activities or sprinkling crops). Excluded: demineralized, deironed and softened water; river water and sea water (2501 00 10) whether or not intended for scientific purposes; ice and steam.
Netherlands 9 Supply of water Tabel I prov. a.28: including water supplied via the public mains network; distilled water; warm water; and ‘other water’ (surface water not suitable for human consumption but usable for non-consumptive purposes such as rinsing activities or sprinkling crops). Excluded: demineralized, deironed and softened water; river water and sea water (2501 00 10) whether or not intended for scientific purposes; ice and steam.
Poland 8 Supply of water Only water supplies by distrubitions networks, tanks, other transport modes
Poland 8 Supply of water Only water supplies by distrubitions networks, tanks, other transport modes
Poland 8 Supply of water Only water supplies by distrubitions networks, tanks, other transport modes
Portugal 6 Supply of water Supply of water is also taxed at 13%. Portuguese VAT law does not depend of CN or CPA codes to apply reduced taxes rates. For this reason, the following codes are approximate and not legally binding. For sake of certainty, reference should be made to the Portuguese VAT law (decree law n.º 394-B/1984, of December 28)
Portugal 6 Supply of water Supply of water is also taxed at 13%. Portuguese VAT law does not depend of CN or CPA codes to apply reduced taxes rates. For this reason, the following codes are approximate and not legally binding. For sake of certainty, reference should be made to the Portuguese VAT law (decree law n.º 394-B/1984, of December 28)
Portugal 6 Supply of water Supply of water is also taxed at 13%. Portuguese VAT law does not depend of CN or CPA codes to apply reduced taxes rates. For this reason, the following codes are approximate and not legally binding. For sake of certainty, reference should be made to the Portuguese VAT law (decree law n.º 394-B/1984, of December 28)
Portugal 6 Supply of natural gas – Portuguese VAT law does not depend of CN or CPA codes to apply reduced taxes rates. For this reason, the following codes are approximate and not legally binding. For sake of certainty, reference should be made to the Portuguese VAT law (decree law n.º 394-B/1984, of December 28) For the fixed component of natural gas supplies in lower pressure contracts (10 000 m3)
Portugal 6 Supply of electricity – Portuguese VAT law does not depend of CN or CPA codes to apply reduced taxes rates. For this reason, the following codes are approximate and not legally binding. For sake of certainty, reference should be made to the Portuguese VAT law (decree law n.º 394-B/1984, of December 28) For the fixed component of electricity supplies in lower power contracts (3.45 kVA). The supply of electricity in power contracts not exceeding 6,90 kVA, until 100 kWh during a period of 30 days, is taxed at 13%.
Portugal 16 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) Azores Autonomous Region
Portugal 22 Special reduced rate for specific regions (including articles 104, 105 and 120 of the VAT Directive) Madeira Autonomous Region
Romania 9 Supply of water The reduced VAT rate is applied for the supply of water for irrigation in agriculture and for water supply and sewerage services. See art. 291 para. (2) letters g) and i) of the Fiscal Code and point 37 para. (13) letter b) of the Methodological Norms.
Romania 9 Supply of water The reduced VAT rate is applied for the supply of water for irrigation in agriculture and for water supply and sewerage services. See art. 291 para. (2) letters g) and i) of the Fiscal Code and point 37 para. (13) letter b) of the Methodological Norms.
Romania 9 Supply of water The reduced VAT rate is applied for the supply of water for irrigation in agriculture and for water supply and sewerage services. See art. 291 para. (2) letters g) and i) of the Fiscal Code and point 37 para. (13) letter b) of the Methodological Norms.
Slovenia 9,5 Supply of water
United Kingdom (Northern Ireland) Exempted Supply of natural gas Exemption with right to deduct the input VAT. Applies to domestic fuel and power.
United Kingdom (Northern Ireland) Exempted Supply of electricity Exemption with right to deduct the input VAT. Applies to domestic fuel and power.

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