Spain Ends Reduced VAT on Energy Products, with Temporary Safeguards

• Spain’s Royal Decree-Law 18/2026 introduces new tax measures in the Middle East crisis response plan, mainly affecting VAT on energy products.
• The temporary 10% VAT rate on electricity, natural gas, biomass briquettes/pellets, firewood, and certain fuels is not generally extended; from July 1, 2026, these items return to 21% VAT.
• A safeguard mechanism can temporarily restore the 10% VAT for electricity, gas, and other covered energy products if the relevant CPI subindex rises more than 15% year over year.
• This safeguard does not apply to fuels such as gasoline, diesel, and biofuels, which remain at 21% without exception.
• The decree also sets the partial Hydrocarbons Tax refund for professional diesel to zero euros from July 1 to September 30, 2026.

Source: allyon-etl.es

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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