Filenews 13 December 2021
The Council of Ministers approved the issuance of a decree to implement the government's policy to address the challenges faced by consumers with the rise in the price of electricity, with the temporary reduction of the VAT rate on electricity.
This decision was taken taking into account principles contained in the European Commission's toolbox for tackling energy price increases and after consulting the European Union's VAT Committee, as set out in the acquis communautaire.
The Decree provides for the following:
• the reduction of the VAT rate for electricity supply that falls under the household tariff for vulnerable consumers 08 and 56 (storage of thermal energy for domestic use) from the standard VAT rate of 19% to the reduced rate of 5%, for a period of 6 months, for electricity consumption from 1/11/2021.
• the reduction of the VAT rate for the supply of electricity falling under the domestic tariff 01 and 02 and 56 (storage of thermal energy for domestic use) from the standard VAT rate of 19% to the reduced rate of 9%, for a period of 3 months for electricity consumption from 1/11/2021.
