Families with five or more members can apply to their supplier for a VAT reduction on electricity from this Monday and must prove their status as a large family.
It is about lowering the value added tax (VAT) on electricity to the intermediate rate of 13% in relation to a contractually agreed output that does not exceed 6.90 kilovolt-amperes (kVA) in the first 150 kilowatt hours (kWh) of large families within consumed for 30 days.
According to an October diploma, a general reduction for all families came into effect on December 1, 2020, and from this Monday the threshold has been increased for families with more than five members, which does not happen automatically.
Households with five or more elements that would like to benefit from the discount on VAT on light must therefore prove the condition of a large family to the respective electricity supplier after submitting a written application by the owner of the energy contract, “explains the regulation.
For this purpose, one of the following documents must be submitted: current IRS statements, Municipal Family Number Card, a statement from the municipality board proving the household, or the last water utility bill on behalf of the energy contract holder, which includes the application of the family water tariff.
The VAT discount for large families is valid from the day after the correctly completed application is submitted and is valid for a period of two years.
Large families must again prove the number of people in the household two years after the first application or each time they change suppliers.
The published regulation also defines some exemptions from the application of the new tax. The charging of electric vehicles at the charging point, the generation, distribution and self-consumption of electricity, and the supply of electricity for public lighting are some examples of cases that will not benefit from the VAT reduction.