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Belgium domestic heating VAT cut to 6% permanent

12% September inflation prompts Federal Budget to make energy VAT cut permanent

The Belgian 2023 Federal Budget has changed the temporary VAT cut from 21% to 6% permanent. There will also be reforms of the excise duties on gas and electricity.

This covers: electricity, natural gas and other heating system supplies. The rate cut on electricity was due to end at the end of March 2023.

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Many other EU states are cutting VAT on fuel.

Extension of prior cut

Belgium had imposed a temporary cut in domestic electricity and natural gas  Value Added Tax rate from the standard rate of 21% to 6%.  This was meant to apply between March and 30 September 2022. Only customers (households) with residential contracts can benefit from the measure. There will also be a short term excise tax cut on petrol and diesel, and an extension of the social gas or electricity tariff until September.

In addition, each household received an energy bill rebate of €100.

EU states reform VAT rate freedoms for economic crisis

In December 2021, EU finance minister agreed new reduced EU VAT rate setting freedoms which should come into place before April 2022.

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