Extension of the Reduced VAT Rate on Electricity Consumption

On August 7, 2024, Law No. 38/2024 was published, extending the application of the reduced VAT rate (6%) to electricity consumption.

This law, which will come into effect on January 1, 2025, amends item 2.38 of List I annexed to the VAT Code, which will now read as follows:

2.38 – Supply of electricity for consumption, excluding its fixed components, for contracted power not exceeding 6.90 kVA, limited to the following consumption levels:

• 200 kWh per 30-day period;
• 300 kWh per 30-day period when purchased for consumption by large families, defined as households with five or more members.