Reduction of VAT rate on electricity as of July 1, 2022

To mitigate the effects of rising energy costs, the Dutch government has decided to temporarily reduce the VAT rate on energy as of July 1, 2022. The VAT rate will decrease from 21% to 9% and the measure will apply for a period of 6 months, until December 31, 2022.

The following supplies of goods/services shall be taxed with 9% Dutch VAT:

  • Natural gas supplied through a natural gas system situated within the territory of the EU or any network connected to such a system;
  • District heating through a heat network;
  • Electricity supplied through the electricity grid;
  • Management services relating to a network or system referred above.

From the same bill follows a temporary reduction of the excise tax on gasoline, diesel and LPG by 21%. This measure has already been implemented as of April 1, 2022. This reduction will remain in effect for 9 months.

Please note that in certain cases, the 21% rate will therefore continue to apply. For example for natural gas, district heating or electricity that is not supplied through a network or system for natural gas, heat or electricity. Energy other than that listed above will also continue to be subject to the 21%.

Do you have any further questions? Please do not hesitate to contact us.

Do you have any further questions?

Franka Pijpers - van Lieshout

Franka Pijpers - van Lieshout