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Royal Decree: Reduced VAT rate for specific energy products due to Russia-Ukraine war

Considering:
– that, like the whole of the European Union, Belgium has been confronted for several months with a constant substantial increase in the prices of energy and particularly of electricity and natural gas;
– that initially, price increases were due to the strong recovery in economic activity as the COVID-19 pandemic waned globally;
– that additional, particularly significant increases in the prices of energy products, and in particular natural gas and heat via heating networks, have taken place in recent weeks, due to the uncertainty over the supply of gas Russian by the war in Ukraine and the impact of the sanctions of the
– that at a time when they are still suffering the consequences of the loss of income caused by the COVID-19 pandemic, Belgian households are therefore faced with extraordinarily high energy bills;
– that these price increases may have an impact on economic recovery, as well as on confidence and support for the energy transition underway;
– that on 14 March 2021, the restricted Council of Ministers concluded a global agreement aimed at making the energy bill affordable for households, in particular by introducing a temporary reduction in the VAT rate for the supply of natural gas and heat via networks heat and by extending the temporary reduction in the VAT rate for the supply of electricity already in force;
– that consequently, the VAT tariff measures decided by the Restricted Council of Ministers and, in particular, the introduction of a reduced VAT rate for the supply of natural gas and heat via heating networks, must enter into force as soon as possible in order to have a real impact on household energy bills as soon as possible;
Having regard to the official request of the Kingdom of Belgium of 18 March 2022 to submit for consultation of the VAT Committee pursuant to Article 102 of Directive 2006/112/EC, the measure aimed at applying the reduced rate of six pc for certain deliveries of natural gas and heat via heating networks and the extension of the reduced rate of six pc for certain deliveries of electricity;
Given the exemption from carrying out the regulatory impact analysis carried out in accordance with Article 8, § 2, 2°, of the law of 15 December 2013 containing various provisions in terms of administrative simplification;
On the proposal of the Minister of Finance and on the advice of the ministers who deliberated on it in the Council,

Source: fgov.be

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