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Consumer benefit from energy VAT reduction | Financial

From 1 July, consumers will pay only 9% VAT on electricity and gas instead of the usual 21%. This reduction only applies to costs incurred in the second half of 2022. De Kok, director of Pricewise, says: “The intention is that the VAT reduction is immediately noticeable for consumers. Energy suppliers can decide for themselves how they implement the reduction, as long as they do it.”

According to De Kok, this also means that the amount will probably be increased immediately in 2023. “Consumers must take this into account so that they are not faced with surprises when the VAT reduction is lifted again.”

Can be felt in the wallet

To calculate what the upcoming VAT reduction will entail, Pricewise looked at the most common household compositions and consumption. The tax reduction applies to all components of the energy bill and will run until the end of the year. The ACM already announced this week that energy suppliers must communicate clearly to their customers about how they will settle the tax reduction in the energy bill.

De Kok: “Last week it turned out that some of the customers currently pay an advance that is too low per month, so that they can cough up the energy bill. Hopefully, the decrease in VAT will provide a more appropriate monthly amount in the coming months, so that consumers are not shocked by their final bill and still have to pay extra at the end of the year.”

Family costs at a glance

In addition to the standard family with children (annual consumption: 3500 kWh, 1500 m3) that saves €253 in the next six months, Pricewise drew up three other profiles. A couple who live together (annual consumption: 1800 kWh, 975 m3) is on average €150 cheaper in the second half of 2022. The couple pays around €25 less per month.

A single person (annual consumption: 1350 kWh, 725 m3) will pay around €110 less in the second half of 2022, which amounts to €18 per month. A household in an electrified house (annual consumption: 7500 kWh and no gas connection) receives a benefit of approximately €150. This household pays €30 less per month in energy costs.

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