Slovenia: Temporary VAT cut of 9.5% on Energy Consumption
The Slovenian Administration proposed a VAT cut to 9.5% from the 22% standard rate on domestic energy consumption and the VAT cut would be applied from September 1, 2022, up to May 31, 2023.
| Categories of Products or Services | Old VAT Rate | New VAT Rate |
| Electricity | 22% | 9.5% |
| Heating Fuels | 22% | 9.5% |
| Natural Gas | 22% | 9.5% |
The government considers reducing the VAT on electricity, natural gas, firewood, and district heating supplies. These are proposed in a bill on immediate VAT measures to combat increasing energy costs, which is being presented to the legislature for emergency adoption.
Finance Minister Klemen Boštjančič told a press conference that the reduced VAT on electricity and natural gas is in addition to measures already taken to regulate the prices of these energy products. However, when it comes to firewood and district heating, the reduced VAT rate is the first such measure the government is taking to mitigate rising prices. In the next phases, the government will also regulate the costs of heating oil and district heating.
The decrease in the value-added tax will result in a deficit of around EUR 130 million in the state budget, approximately EUR 40 million less this year and EUR 90 million less next year. According to the minister, the beneficial effect on homes is projected to range from a few hundred to over a thousand euros throughout the heating season.
During the adoption of the budgets for 2023 and 2024, amendments to the current budget will be developed, and debates on these amendments will begin this August.
Source: www.gov.si
