January 22, 2021

A 2006 European directive allows lower VAT on electricity and gas


Madrid

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A 2006 European Commission directive on VAT states that “member states may apply a reduced tax rate to the supply of natural gas, electricity and district heating, provided there is no risk of distortion of competition».

Article 102, section 3 of chapter 2 of directive 2006/112, to which this newspaper has had access, adds that “any member state that is going to apply a reduced rate under the paragraph it will first inform the Commission in advance. This will rule on the existence of risk of distortion of competition. If the Commission does not comment within three months of receipt

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