What does the gas VAT deduction consist of? This will affect your bill

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Coup effect of Pedro Sánchez Government. After that denied for months On behalf of the government, the president announced this Thursday that the VAT on gas has been cut from 21% to 5%. October and until 31 December, which may be extended beyond that date. The purpose is to assist in auditing the receipt. more consumption per month due to the cold and full escalation of wholesale hydrocarbon prices in retaliation Russia For the sanctions he was subjected to due to the invasion of Ukraine. You can save money between 5 and 19 euros per month, according to preliminary calculations by consumer associations. However, there are still unknowns regarding the implementation of the measure.

How much will it save for an average bill?

consumer association FACUA calculated an average savings between five and nine euros one month. Therefore, a user with a monthly consumption of 400 kilowatt-hours (kWh) and covered by the TUR1 regulated rate (usually up to 5,000 kWh annual consumption for cooking and hot water) would currently pay 35.92 euros per month and will pay 31.17 euros. For a consumption profile of 800 kWh per month in TUR 2 (between 5,000 and 15,000 kWh per year, this usually means it also has gas heating), the bill will increase from 67.76 to 58.80 Euros.

Another organization OCUestimated an average savings among 8 and 10 euros in TUR and 19 euros in the liberalized market. Thus, if extended for an average of one year, the average consumer in the regulated market will have a reduction of 103 euros per year from 789 euros to 677 euros, while a typical consumer in the liberalized market will have savings. According to data provided to ‘TVE’, 227 euros per year, from 1,719 to 1,492 euros.

Why 5% rate?

this directive Europe The regulator of VAT gives the member states the power to apply it. discounted rates natural gas, electricity and heating, but minimum rate of 5%. This was communicated by Paolo Gentiloni, Commissioner for Economic Affairs, in a letter sent to 27 partners at the end of April this year detailing the financial measures that could be taken to tackle the current energy crisis. In other words, the Government cannot reduce the invoice to 4%, which is the minimum value added tax rate in Spain, but must do so at 5% at the most.

Who was affected?

The President did not make a statement as to whether the measure would apply to Turkey. all consumers of gas or only domesticnor will it benefit all fees (7.96 million consumers at the end of 2021) or only edited (7.73 million consumers and 14.7% of consumption). For reference, the VAT reduction on electricity bills (from 21% to 10% at first and 5% from June) is applicable to all consumers with contracted power up to 10 kilowatts, provided the wholesaler’s average monthly price is met. higher than the previous month’s 45 euros per megawatt-hour. In other words, to all electricity bills of both free market consumers and regulated market (PVPC) consumers and households and SMEs.

When does it start to apply?

Pedro Sánchez announced that the discount will begin in October. “Now that we’re going in last spring and winterIt makes sense for us to try to lower the bills of our country’s citizens,” he said, referring to the high gas consumption recorded during the colder months due to heating. new quarterly rate review edited TUR. In principle, the measure will be in effect until December 31, but the president has left the door open to extend it. “We will open to extend” throughout the next year“While this very difficult situation for families in our country is going on,” he said.

How much money will the government stop collecting?

Minister of Finance, Maria Jesus Monteronearly encrypted €190 million It will cease to enter the public coffers between October and December. He also pointed out that the VAT reduction on gas would have a lower impact than the reduction in electricity (the special tax reduction and suspension of value tax on electricity, implemented since the summer of last year). electricity generation), by next December the State will have stopped collecting more than 10,000 million for these concepts.

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