- Spain ended the temporary 10% reduced VAT on electricity, natural gas, pellets and firewood as of 1 June 2026, reverting to the standard 21% rate, after April CPI data showed electricity prices fell 4.3% and gas prices fell 9.6% year-on-year — below the 15% threshold required to maintain the relief. [theleader.info], [spainenglish.com]
- Fuel-related VAT relief (10% instead of 21%) remains in force until 30 June 2026, as fuel prices exceeded the 15% threshold (liquid fuels +51.7%, diesel +28.2%). Professional diesel users continue receiving a €0.20/litre rebate. [spainenglish.com]
- The European Commission has formally warned Spain that its fuel VAT cut from 21% to 10% breaches the EU VAT Directive. No infringement proceedings have been initiated yet, but escalation is possible if the cut is extended beyond 30 June. [vatcalc.com]
🔗 Spain in English – Energy Tax Phase-Out | VATcalc – Spain Fuel VAT EU Challenge
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