Spanish Government To Approve 11% Drop In VAT On Electricity Bills

Spanish Government To Approve 11% Drop In VAT On Electricity Bills

Spanish Government To Approve 11% Drop In VAT On Electricity Bills.

The Spanish Government plans to propose to the Council of Ministers this Thursday, June 24, the reduction of the VAT (IVA) on electricity to 10%, compared to the current 21%, as reported by Cadena SER and confirmed by sources from the Executive Council.

The idea is that, although it is a temporary measure, it will be extended during the current period of rising costs of the bills. According to various experts on the matter, the discount will be extended at least this year.

The Minister for Ecological Transition, Teresa Ribera, already opened the possibility last week for a reduction in electricity taxes “on an exceptional and provisional basis” to stop the rise in the price of electricity. The Minister of Finance, María Jesús Montero, said that the measure would be studied very carefully, while the Finance Ministry has misgivings, according to the same Executive sources.

On Thursday there will be an intense discussion about the proposal, but the political decision has been made: the reduction of the VAT on electricity will be made. The Government has so far failed to stop the price rises despite the multiple reforms of the electricity system, and this issue has become a very important headache for Sánchez and his team.


In a period when electricity prices in Spain had just seen the highest rise ever, with a 27 per cent increase in price announced only last week, today (Tuesday 12,January) the Spanish Government refused to drop the IVA (VAT) tax on electricity from 21 per cent to the requested 10 per cent.

María Jesús Montero, the Minister of Finance and Government, during the meeting of the Council of Ministers, stated that 21 per cent VAT is a figure set by Brussels under EU law, and is something that the government would not be allowed to go against it.

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Ron Howells

Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!. Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.