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V1485-23 ·1 June 2023 ·consulta-vinculante Medium impact
Tax

Heating supply must be taxed at the standard 21% VAT rate

A company inquired whether the supply of heating and hot water via natural gas could qualify for the reduced 5% VAT rate. The DGT ruled that while the 5% reduced rate applies to natural gas itself, it does not apply to the heating service, which must be taxed at the standard 21% rate.

In 6 key points

How it affects those involved

This ruling clarifies the distinction between the supply of fuel and the provision of heating services, ensuring that service-based heating is subject to the standard VAT rate rather than the reduced rate applied to energy commodities.

Lifecycle

2023-06-01PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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