Lowering of VAT on electricity consumption to 6% for first 200-300 kWh/month from January 2025.

• Starting from January 1, 2025, households with a contracted power up to 6.49 kVA can consume up to 200 kWh per month with a reduced VAT rate of 6%
• For large families, the limit increases to 300 kWh
• The VAT rate for electricity consumption will decrease from 23% to 6% for the first 200-300 kWh consumed each month
• The change required an amendment to the VAT Code to increase the amount of electricity subject to the reduced rate
• The new law was approved in Parliament against the will of the government and promulgated by the President
• The measure is estimated to benefit 3.4 million consumers and cost around 90 million euros
• This is the fifth measure announced by the Secretary-General of the PS to reduce taxes on electricity consumption

Source: jornaldenegocios.pt

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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