Although there are many concepts that appear on an electricity bill and that can confuse you, in this article we will focus only on the taxes on the bill , to explain their characteristics and understand how they are applied.
Electricity taxes: what are they?
Regardless of the amount we spend on electricity, there are concepts business and consumer email list on the bill that are always included and that are obligatory for both free market and regulated market customers : these are taxes. The ones you should know about are the following:
Electricity taxes: what are they?
Also known as electricity tax, it is a special type of tax, like those that tax hydrocarbons, alcohol or tobacco. It is set by the Ministry of Industry and its aim is for energy consumers to be responsible with the limited resources that nature offers us .
Another objective of this tax is to guarantee environmental conditions that protect people's health and to finance public services such as healthcare and education .
How to apply?
The electricity tax, which was previously 5.1%, will be 0.5% until 31 December 2023 ; this is the minimum to which European regulations allow it to be reduced. That is why it is called the Community minimum . It is calculated as follows:
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If I don't consume energy, do I also pay the tax?
If you have a consumption of 0, no tax is paid and, therefore, you will not be charged anything, as established by the General Directorate of Taxes.
How is the electricity tax paid?
There is nothing specific to do. Payment is made automatically through your direct debit electricity bill.
Are there any payment exceptions?
Although it is compulsory to pay it, there are cases in which reductions of up to 85% of the taxable base of the Special Tax on Electricity are contemplated . Even so, these are very specific activities:
Agricultural risks.
Metallurgical and mineralogical processes.
Industrial activities with an electricity consumption of at least 5% of the value of production.
Industrial activities whose electricity consumed represents more than 50% of the cost of a product.
Value Added Tax (VAT)
This is probably the one you know best, as we see and pay it almost every day. It is a tax that is also set by the Spanish Government and is calculated on all products or services. As for VAT on the electricity bill, this is the most important:
How to apply?
Again, all consumers pay for it, whether they are in the free or regulated market . Due to inflation and the energy crisis, VAT is reduced to 5% (previously it was 21%) in households with a contracted power of up to 10 kW . This measure remains in effect until 31 December 2023 .
There are two exceptions:
In the Canary Islands, the IGIC (Canarian General Indirect Tax) is applied , which is 7% .
