Galp has suspended its customers’ billing “for now” due to the government’s cut in VAT on electricity, but hopes to have the process regularized by the end of next week, an official source said.
Commenting on Lusa, regarding billing delays, the company said it “is in an urgent need to suspend the billing of its customers for the time being after the change in the VAT on electricity, as a result of Legislative Decree No. 18/2022 of October 21, with effect from October 1.
The same source indicated that “Galp is reinstating billing impacted by this situation and expects the process to normalize and stabilize by the end of next week.”
The law lowering the VAT rate on electricity from 13% to 6%, a measure announced by the Prime Minister on September 5, was published on October 21, effective from the first of the month until 2023.
EDP also delayed billing customers, pending the publication of the law.
As part of a support package for families to mitigate the impact of the rise in the cost of living on income, the reduction (from the intermediate rate to a reduced rate) in VAT on the supply of electricity is retroactive to October 1. and ends on December 31, 2023
The reduced rate is applied to the supply of electricity for consumption, excluding its fixed components, for a contracted capacity not exceeding 6.90 kVA, provided that this does not exceed 100 kWh during a period of 30 days or 150 kWh for 30 days. days when acquired for consumption by large families, the law considers households consisting of “five or more” persons as such.
The rules with which the application of the amount must comply, namely with regard to electricity purchased for consumption by large households, its calculation in multi-hour rates or the definition of the rules applicable to the calculation of the share of limits, are determined by decision of the members of the government responsible for the areas of Finance and Energy, according to the diploma.
The reduction of the VAT rate in Portugal follows the example of other countries of the European Union and benefits from the opening of Brussels, which allows Member States to apply the reduced VAT rate since April without having to consult the VAT Committee.
Under the new rules, countries can apply the reduced VAT rate to a list of 24 categories (out of a possible 29).
Source: DN
