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V2518-21 ·7 October 2021 ·consulta-vinculante Medium impact
Tax

10% VAT rate applied to electricity supplies based on the time of tax accrual

An electricity supplier has enquired whether the reduced 10% VAT rate applies to supplies made or those invoiced after the regulation came into force. The Directorate-General for Taxes (DGT) has ruled that the applicable rate is the one in force at the time of accrual, which for supplies occurs when the relevant part of the price becomes due.

In 6 key points

How it affects those involved

This ruling provides legal certainty for energy companies regarding the correct VAT rate to apply during transitional periods or changes in tax legislation, clarifying that the timing of the tax accrual (when the price is due) determines the rate.

Lifecycle

2021-10-07PublishedPublished 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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