Portugal To Lower VAT On Certain Utilities

by Ulrika Lomas, Tax-News.com, Brussels

29 April 2019

Senior Portuguese ministers have approved a proposal to introduce the six percent reduced rate of value-added tax on supplies of electricity and natural gas to certain consumers from July 1, 2019.

Portugal's Council of Ministers agreed the reduced rate will apply to three million households' electricity bills and 1.4 million households' natural gas bills. It is targeted at those households with lower electricity power, in a bid to ensure that lower income households benefit most.

A reduced rate of four percent will apply in Azores, and five percent in Madeira.

It will benefit those who, for electricity, have contracted electricity power not exceeding 3.45 kVA and, for natural gas, have low pressure consumption of gas not exceeding 10,000 m3 per year.

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