Temporary VAT rate changes on Energy in the European Union (Update March 16, 2022)

Last update: March 16, 2022 (Updates vs. previous issue highlighted in BOLD)

• Belgium
  • Temporary VAT Rate Cut on Electricity (6% from March 1 till June 30, 2022)
  • UPDATE: Reduced VAT rate of 6% on electricty and gas till end of Sept 2022, Lower Excise duties on diesel and petrol
• Bulgaria considers 0% VAT for water and natural gas, electricity, and central heating as of April 1, 2022
• UPDATE Croatia: Electricity: VAT rate is cut down from 25% to 13%. Gas: VAT rate is temporary reduced from 25% to 13% – this is a temporary reduction until March 2023.
• Cyprus – reduce fuel tax by the maximum levels allowed by the European acquis – 5% – and extend the period during which the 9% VAT cut on power consumption
• Italy:
  • 5% VAT rate on gas also for the second quarter of 2022
  • UPDATE: Extension of the temporary super-reduced VAT rate of 5% on supplies of natural gas for domestic and industrial purposes till June 30, 2022
• Latvia’s governing coalition parties discuss cutting VAT on energy from 21% to 5% to stem rising energy costs
• Lithuanian government plans to temporarily apply a 0% VAT rate to district heating
• Netherlands: Cabinet wants to reduce the VAT on energy (natural gas, electricity and district heating) from 1 July 2022 for six months from 21% to 9%
  • UPDATES: Proposal Cabinet has been approved
    • Proposed purchasing power measures 2022 due to higher energy bill
    • Netherlands Reducing VAT on Energy and Excise Duty on Fuel
    • Proposed purchasing power measures 2022 due to higher energy bill
    • Cabinet will lower excise duties on fuel as of April 1, 2022
    • VAT and excise duties on energy are temporarily reduced
• North Macedonia removes VAT on basic foods, lowers fuel excise duties
• Poland: From February 1, 2022, till July 31, 2022 VAT on fuel from 23 to 8%, electricity and heat to 5%.
• Portugal: UPDATE: Extension of the measures to offset rising energy prices: Refund increased VAT revenue through a reduction in the Tax on Petroleum Products
•  Romania
  • Proposal: Reduced VAT Rate of 5% on Car Fuels as of April 1, 2022
  • Reduced VAT Rate of 5% for Heating Supplies as of Jan 1, 2022 till March 31, 2022
• Spain: VAT rate on electricity supplies to 10% extended till 30 June 2022

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