Temporary 5% VAT rate will apply to certain electricity and certain fuel supplies until 31 December 2023

• Spain has implemented measures to combat inflation, including reducing VAT rates on certain energy supplies until December 31, 2023.
• The reduced VAT rate of 5% applies to electricity contracts with a fixed power term of up to 10 kW when the average monthly wholesale market price exceeds €45/MWh.
• The 5% rate also applies to natural gas and briquettes and pellets from biomass and wood for firewood, with no further conditions.
• The new VAT rate will be reflected in both the electronic and paper forms from July 2022 to December 2023.

Source Marosa