If you prefer to always view the website in English, please click here.

How much is VAT on electricity in Spain?

What is the tax rate on electricity bills in Spain? We explain what VAT, IVPEE and IEE are.

 How much is paid in taxes on electricity in Spain?

If you check your electricity bill, you will see that only part of what is billed is for your consumption and power. Approximately one third of your bill is for taxes, with two types: VAT and special tax on electricity. There is also a third tax, the tax on electricity production, which is not included on your bill but can affect the cost of electricity. Let's look at each of them individually.

 

VAT on electricity

VAT is Value Added Tax. This is a consumption tax that exists in many countries, including Spain. It forms the basis of the Spanish indirect taxation system. It was first introduced in 1986 and was reformed in 1992 to adapt to the European single market.

In Spain, VAT is divided into three types:

  • General VAT: it is levied at 21%. Most products and services fall into this category.
  • Reduced VAT: in this case the rate from July 1, 2022 is 5%.
  • Super-reduced VAT: levied at 4%.

Until June 2021, VAT on electricity supply services was the general one, that is, 21%.

This percentage ranked Spain among the European Union (EU) countries with the highest VAT on electricity consumption, only behind Hungary (27%), Denmark (25%), Croatia (25%) and Sweden (25%).

At the other end of the list were Greece (6%), the United Kingdom (5% for domestic consumers), Malta (5%), Italy (10%), Ireland (13.5%) and Luxembourg (8%). Portugal applies 6% VAT for the first 100 kW/h of consumption and thereafter raises it to 23%.

In the case of France, there are two types of VAT: the reduced rate of 5.5% is applied to the fixed bill items (down payment and subscription fee), while the general 20% is applied to the variable item (consumption).

VAT rates in Europe with regard to electricity consumption

Highest VAT:

  • Sweden, Denmark, Hungary and Croatia: >25%

Variable VAT depending on consumption: France and Portugal

Lowest VAT:

  • Italy and Ireland: <15%
  • Spain, United Kingdom and Greece: <10%

*VAT in Spain exceptionally reduced since 1st of July 2022.

Reduction of VAT on electricity in 2021

However, in June 2022 the Spanish Government made a temporary modification to the category which includes electricity, which let to it being included in the category of products and services with reduced VAT, so since then, VAT is only 5% for both private and company consumers with contracted powers up to 10 kW. Royal Decree-Law 11/2022, of June 25, also states that reduced VAT will be maintained providing the wholesale market price remains above €45 per MWh.

It should be remembered that, since the publication of the previous Royal Decree-Law 12/2021, of June 24, 2021, which reduced VAT from 21% to 10%, the market price has remained above €45 per MWh.

Royal Decree-Law 11/2022 also states that severely vulnerable consumers and those at risk of exclusion, in other words, those that meet the requirements to be granted access to the Social Bonus, will remain with reduced VAT even if the wholesale market price falls below €45.

 

Special tax on electricity

The special tax on electricity (IEE), also called the electricity tax, is a tax levied on the cost of manufacturing electricity at a rate of 5.113% of the amount of the charges for consumption and power. It is calculated by adding the amounts of the charges for electricity and contracted power. Remember that this tax is calculated before applying VAT. Any homes, business premises and spaces that have contracted an electricity supply point pay it, regardless of whether they consume electricity or not.

This tax was approved in 1992, through Law 38/1992. Originally it was called ‘specific cost allocated to coal mining’, because at first it was created as a measure to support mining.

Since June 2021 this tax has been reduced to 0.5%, through Royal Decree-Law 12/2021. The Royal Decree-Law 06/2022 has extended this reduction until 30 June 2022.

 

Tax on electricity production

The Tax on Electricity Production (IVPEE) consists of a 7% tax levied on electricity production and was created in December 2012 through Law 15/2012. The main purpose is to contribute to sustainability with the proceeds and minimise the impact that electricity production has on the environment.

It applies to any building, regardless of the energy source, the dimensions or profit from operations. This tax is aimed at the producer.

It is calculated without including IVA, in other words, based on the gross inflows of income that are generated during the production of electricity and its inclusion in the electricity system, received or to be received by the taxpayer.

No other country in our vicinity has such a tax on electricity supply.

As happened with VAT, in June 2021 the Government agreed to suspend this tax during the third quarter of last year, through Royal Decree-Law 12/2021. This measure has been extended until 30 June 2022, through Royal Decree-Law 06/2022.

Total taxes on the electricity bill

As mentioned above, taxes depend on consumption and power. We could say they represent approximately one third of the bill. However, the measures to reduce the VAT and IEE rates have lowered the percentage of taxes to almost 10% of the bill.

Comparison of Electricity and Gas Tariffs

You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.

Do you want to see all our offers?

Spend a minute to find the product which best adapts to you:

{{firstStep.title}}

We are finding the right energy for you...

We are finding the right energy for you...

advise icon go to the advise Facebook icon go to Facebook Twitter icon go to Twitter Youtube icon go to Youtube Messenger icon go to Messenger Linkedin icon go to Linkedin Instagram icon go to Instagram Shared Link icon Go to the shared link Checkmark Success icon Checkmark Success down arrow icon down arrow Previous Go to previous Next Go to the next close icon close add icon add up arrow icon up arrow oblique arrow icon look obliquely Arrow down icon Arrow down search engine icon search search engine icon search share icon share filter icon filter email icon send mail email icon email phone icon phone fax icon fac print icon print play icon play user icon go to the user section error icon an error has occurred info icon information thumb up icon like thumb up icon like thumb down icon don't like thumb down icon don't like clock icon Clock Lamp icon Lamp List icon List Map icon Go to the map Phone icon Phone Emergency icon Emergency Pause icon Pause Play icon Play Logout icon Sign off Phone icon Phone
go back icon go back in navigation number 50 icon go to product Tempo Happy 50 Horas calendar icon go to product Tempo Happy Día companies icon go to the business segment gas icon go to gas product catalog rising sun icon go to Tempo Verde-Renewable Energy product home icon go to the household segment 24 hours icon go to One Luz product electricity icon go to Luz's product catalog electricity and gas icon go to the Luz + Gas product catalog moon icon go to product One night light monkey wrench icon go to breakdowns and repairs sun icon go to Tempo Solar product clock icon go to Tempo Happy products 2 hour clock icon go to Tempo Happy 2 Hours product 24 hours icon go to product One Luz number 50 icon go to product Tempo Happy 50 Hours Medium Voltage power line See product catalog with electricity consumption from € 36,000 to € 360,000 / year High Voltage power line See catalog of products with electricity consumption more than € 360,000 / year company icon go to the business segment calendar icon go to product Tempo Happy Day Property management firms icon go to the Property management firms DarkSite icon DarkSite icon light bulb icon See product catalog with electricity consumption less than € 6,000 / year electricity and gas icon go to the Electricity+ Gas Products catalog electricity icon go to the electrical products catalog email icon email contact fax icon fax contact Low Pressure gas icon see catalog of gas products with consumption of less than € 6,000 / year High Pressure gas icon see catalog of gas products with consumption from € 6,000 to € 240,000 / year Medium Pressure gas icon see catalog of gas products with consumption of more than € 240,000 / year gas icon go to gas product catalog Enel icon go to the enel website heater icon heater maintenance service heater maintenance icon go to maintenance service OKGas Heater home icon go to the household segment pressure cooker icon pressure cooker monkey wrench icon go to breakdowns and repairs Medium Voltage power line icon see catalog of electricity products with consumption from € 6,000 to € 36,000 / year moon icon go to product One Night Light sphere icon go to personal website phone icon telephone contact rising sun icon go to Tempo Verde-Renewable Energy product solar panel icon go to photovoltaic solar energy clock icon go to Tempo Happy products black handyman icon with thumb down selected the reaction "I don't like it" little hand icon with thumb down select the reaction "I don't like it" black hand icon with thumb up selected the "like" reaction little hand icon with thumb up select the "like" reaction
Añadir otro equipo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Eliminar equipo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Aspiradora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Horno Lorem ipsum dolor sit amet, consectetur adipisicing elit. Lavadora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Lavavajillas Lorem ipsum dolor sit amet, consectetur adipisicing elit. Microondas Lorem ipsum dolor sit amet, consectetur adipisicing elit. Plancha Lorem ipsum dolor sit amet, consectetur adipisicing elit. Punto de recarga vehículo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Radiador eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Secadora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Split Aire Acondicionado Lorem ipsum dolor sit amet, consectetur adipisicing elit. Termo Lorem ipsum dolor sit amet, consectetur adipisicing elit. Tostador Lorem ipsum dolor sit amet, consectetur adipisicing elit. Vitrocerámica Lorem ipsum dolor sit amet, consectetur adipisicing elit. Power edit Lorem ipsum dolor sit amet, consectetur adipisicing elit. Map marker Lorem ipsum dolor sit amet, consectetur adipisicing elit.