Protect yourself against VAT increases in Spain on electricity in 2024

2024 will see VAT increase on a range of goods and services, including electricity and gas. At Robinsun, we help you protect yourself against such price increases, at least partially.

VAT increases in Spain in 2024

The Spanish government has announced changes to the VAT applied to a wide range of goods and services in 2024. VAT on electricity, which in 2021 was reduced from 21% to 10% and a year later to 5%, has increased back to 10% as of 01.01.2024. It has to be seen when VAT on electricity will increase to its 2021 level of 21%, ending the government’s actions against inflation and the energy crisis triggered by Russia’s invasion of Ukraine.

Also other energy types will see their VAT regime increase. As of 01.04.2024 VAT on gas will return to the 21% regime. As of 01.07.2024 VAT on pellets, briquettes and firewood will also increase to 21%.

Also other energy related taxes will increase in 2024. The Special Tax on Electricity will increase from the current 2.5% to 3.8% in Q2/2024. It stood at 5.113% before the government intervened.

What does this mean for household power bills?

Very simply: higher power bills. VAT will impact a households’ power bill directly. It is possible that indirect tax increases will be passed on to consumers. And with the further electrification of heating, that migrates expenses from gas to electricity, the electricity VAT increase will be felt even stronger. And should VAT on electricity get back to its original 21% level, this would mean a 400% increase of VAT on a household’s power bill.

Take action against increases in your power bill