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Slovenia reduces VAT rate on certain types of energy products

Slovenia’s Government adopted a draft act on a lower rate of value-added tax on certain types of energy products.

By temporarily reducing the VAT rate from 22 per cent to 9.5 per cent, the Government is addressing the impact of energy price increases during the peak energy consumption period, the heating season, from 1 September 2022 to 31 May 2023.

Finance minister Klemen Boštjančič said that the lower value added tax will benefit all users, but most of all households. The Government’s measure also covers those who already enjoy low electricity and natural gas prices and the savings on users’ bills could range from a few hundred to a thousand euros per year over the nine months the measure is in force.

Indeed, the VAT reduction complements the measures already adopted to regulate the prices of electricity and natural gas. And it also includes district heating and wood biomass for heating.

Minister Boštjančič also explained that it is not possible to reduce the VAT on heating oil, due to the relevant European directive, but in the coming weeks, the Government will take action regarding this energy product and regarding district heating by regulating prices.

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