Belgium announces temporary low VAT rate for electricity, natural gas, and district heating

In an amendment to Royal Decree No. 20., Belgium has introduced a temporary reduced value added tax (VAT) rate of 6% for the supply of electricity for residential contracts (i.e., in the context of contracts for which no company number has been communicated by the customers-natural persons). The reduced rate will be in effect until 30 September 2022.

Belgium has also introduced a temporary provision under which the supply of natural gas and district heating for residential contracts will be subject to the reduced VAT rate of 6% from 1 April 2022 until 30 September 2022.

Source: IBFD