Reduced VAT and business contributions. In a circular the news on rates and concessions in the gas sector
Reduced VAT on gas supplies, cut of the methane tax for motor vehicles, contributions for “gas-hungry” and non-gas-intensive companies. These are some of the issues contained in circular no. 20 / E – today’s pdf , which illustrates the news regarding VAT rates and tax credits in the gas sector, provided for by the Sostegni-ter decrees (Legislative Decree no. 4/2022), Energy ( Legislative Decree no. 17/2022 ), Ukraine (Dl n. 21/2022) and Aid (Dl n. 50/2022).
“Soft” VAT for supplies of methane gas – The Energy decree provided for the extension of a further quarter of the reduction of the VAT rate to 5% for supplies of methane gas intended for combustion for civil and industrial uses with reference to estimated consumption o effective for the months of April, May and June 2022. A temporary reduction is also foreseen, from May 3 to July 8, 2022, of the VAT rate applied to natural gas used for transport, which slips from 22% to 5%.
The tax credit for companies with a high consumption of natural gas – The same Energy decree introduced, for the second quarter of 2022, an extraordinary contribution equal to 15% of the expenses incurred, then raised to 20% by the Ukraine decree and lastly 25% from the Aid decree , in the form of a tax credit, in favor of gas-hungry companies, to guarantee them partial compensation for the higher charges incurred due to the exceptional rise in the price of natural gas. The tax credit can only be used as compensation and does not contribute to the formation of business income or the IRAP tax base. The Aid decreehas recently extended the concession also to the first quarter of 2022 by 10%.
Requirements to access the benefit –In order to benefit from the benefit, it is necessary that the companies have undergone an increase in the reference price of natural gas, calculated, respectively, as regards the expenses incurred in the first quarter of 2022, as an average referring to the last quarter of 2021, higher than 30 % of the corresponding average price referring to the last quarter of 2019 and, for expenses incurred in the second quarter of 2022, as an average of the first quarter 2022, higher than 30% of the corresponding average price of the first quarter of 2019. a tax credit equal to 10% of the expenses incurred for the gas component purchased and actually used in the first quarter of 2022 and of 25% of the same expenses relating to the second quarter of 2022.For “non-gas consuming” companies (other than those with a high consumption of natural gas), where they have undergone an increase in the reference price of natural gas, calculated as an average for the first quarter of 2022, higher than 30% of the corresponding average price for the first quarter 2019, a tax credit equal to 25% of the cost of purchasing gas consumed in the second quarter of the current year is envisaged.
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