Royal Decree-Law 12/2021, of 24 June adopting urgent measures in the field of energy taxation and energy generation, and on the regulation fee management and the water rate, has been published.
On 25 June 2021, the BOE published Royal Decree-Law 12/2021, of 24 June, adopting urgent measures in the field of energy taxation and energy generation, and on the regulation fee management and the water rate (hereinafter, the “RD-L 12/2021”), which promotes temporary and immediate measures to reduce consumers’ electricity bills.
The main tax changes introduced in RD-L 12/2021 are detailed below:
- VAT reduction from 21% to 10% from its entry into force until 31 December 2021 on deliveries, imports and intra-Community acquisitions of electric power in favour of:
a) Consumers with a contracted power of less than 10 kW, provided that the arithmetic average price of the wholesale electricity market corresponding to the month prior to that of the last day of the billing period has exceeded 45 €/MWh.
b) Severely vulnerable consumers and those at risk of social exclusion in accordance with the provisions of Royal Decree 897/2017, of 6 October, regardless of their contracted power and the market price
- The suspension of the Tax on the Value of Electricity Production (IVPEE) during the third calendar quarter (between July and September). This tax is levied at 7% of the income obtained from the sale of electricity on the wholesale market and is passed on in the wholesale market price and in the final invoice. This suspension entails modifying the calculation of the taxable base and the instalment payments regulated in the tax regulations for the 2021 financial year.