10.24.22

Reduced VAT rate extension for electric, gas and heating supplies

The Russia / Ukraine conflict has compelled many countries to review their fiscal policies, especially in relation to electric, gas and heating – especially as Russia serves as conduit for many of these essential supplies. 

Further to Royal Decree No. 2022015061, which entered into force on 1 August 2022, the Belgium tax authorities have cited the following changes: 

• Extension of the 6% reduced VAT rate on electricity supplies under residential contracts until 31 December 2022 
• Extension of the 6% reduced VAT rate for the provision of natural gas and energy heating systems from 1st August 2022 August 1 to 31 December 2022 
• A reduced VAT rate for certain heat pump operations, specifically on hybrid setups that use energy supply.  

Considering the continued conflict and rising inflation globally, we expect many other countries to enact similar fiscal policies over the coming autumn and winter.