VAT – Amendment to the VAT rate applicable to supplies of electricity

In brief

Decree-Law 74/2020, of 24 September, published in the Official Gazette, amends the VAT rate applicable to supplies of electricity with a contracted powers that cannot be higher than 6.90 kVA, to the level of consumption that does not exceed:

a) 100 kWh for a period of 30 days;
b) 150 kWh for a period of 30 days, when acquired for the consumption of large families (5 of more family members).

Said diploma shall be further regulated. It is effective from 1 December 2020 onward, except regarding letter b) which will only become effective from 1 March 2021 onward.

^{© 2020 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.}