AT increase on electricity in 2024: How does it affect your bill?
Other taxes related to electricity
What is the Special Tax on Electricity?
What is the Tax on Electricity Production?
How to save after the increase in VAT on electricity?
We are sure we are not telling you anything new when we tell you that, with the beginning of a new year, it is normal to experience a rise in prices for all types of products and supplies. Well, the VAT on electricity in 2024 will also be affected.
This tax has been reduced for several years to deal with ncrease on whatsapp number list electricity the energy crisis. Now that the worst of that period is over, the Executive has decided that it is time for everything to return to normal. That is why VAT on electricity and gas is already increasing.
VAT on electricity
VAT is the Value Added Tax . A tax that everyone, individuals and companies, have to pay when they buy a product or consume a service. Naturally, energy is also subject to this tax.
Generally speaking, VAT on electricity is 21% , but a reduced VAT rate has been applied to electricity since 2021.
At that time, there was a severe energy crisis. If you remember, both stellato’s set included tom hardy energy and gas prices rose dramatically. This was due to the fact that there was a global energy shortage . Caused by the effects of the economic recovery that began after the Covid-19 pandemic.
As a result, consumers were paying very high bills, because producing energy had become excessively expensive. In order to try to alleviate the problem to some extent, the Government decided to reduce the VAT on electricity.
Since June 2021 , the Value Added Tax payable for consuming electricity has been increased to 10% instead of the usual 21%.
However, a few months later the situation became complicated again. At the beginning of 2022, the conflict between Russia and Ukraine began , which further increased the price of energy. The Executive then decided to apply a new reduction and set the VAT on electricity at 5% .
This measure was due to expire on 31 December 2023, but the Council of Ministers decided to extend the package of anti-crisis measures . However, some adjustments have been made.
VAT on electricity 2024, back to normal
Fortunately, the worst of the energy crisis is over. Generating electricity is once again reasonably priced, so VAT can begin to recover.
To ensure that consumers do not notice america email list drastic change from one bill to the next, a gradual increase has been decided . Since 1 January, the current VAT applied to electricity bills is no longer 5% but 10% .
As of March 1, 2024, VAT on electricity returns to its usual rate of 21%. The reason is that, during the month of February, the market price fell below €45/MWh. From that moment on, the existing bonuses have been automatically eliminated because the Government has not intervened.