VAT – Reduced Rate on Electricity Consumption | Expansion

In brief

Law No. 38/2024, of 7 August, published in the Official Gazette,,provides for an extension of the application of the reduced VAT rate to the supply of electricity.

Therefore, as of 1 January 2025, the reduced VAT rate will apply to the supply of electricity for consumption, excluding its fixed components, for a contracted power not exceeding 6.90 kVA, for the portion that does not exceed: 

a) 200 kWh per 30-day period; 

b) 300 kWh per 30-day period, when purchased for the consumption of large families, which are considered to be households consisting of five or more people.

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