How does the new VAT hike affect my business?

From 1 January 2025, the VAT will revert to its general rate of 21% for contracted power equal to or less than 10 kW. Until then, a reduced VAT rate of 10% was applied, provided two conditions were met:

1. The contracted power was equal to or less than 10 kW.
2. The average wholesale market price of electricity in the previous month exceeded €45/MWh.

This arrangement, established by Royal Decree-Law 8/2023, was applied automatically and ceased to be in effect at the end of 2024.

What other measures in place may affect my business?

Another measure included in this Royal Decree-Law is the adjustment to the special tax on electricity (IEE). Until 31 December 2023, this tax was set at 0.5%. However, with the approval of the Royal Decree-Law, it increased to 2.5% during the first quarter of 2024. In the second quarter, it reached 3.8%, with a minimum cost determined based on usage. Starting in the third quarter, the tax returned to its normal rate of 5.113%.

As for VAT on natural gas, it was also reduced from 21% to 10% during the first quarter of 2024. From the second quarter of 2024 onward, the VAT on gas returned to 21%.

What can I do to avoid price increases for my company?

Being well advised and choosing the electricity tariff for your business that best suits the activity it performs is the best way to control consumption and monthly expenditure on your company's electricity bill. At Endesa Energía, we offer the best advisory service. We provide you with an energy guide dedicated to your company, who will help you at all times with any questions about the application of these measures or other concerns you may have.

Call our freephone number for Business customers, 900 906 664, trust our expert service and avoid possible increases or surprises in your bill by choosing the best electricity and gas price for your company.