In the Amendments to the Value Added Tax Act (Nar. Nov., No. 33/23.), the extension of the application of the reduced VAT rate of 5% to energy products is specified. The application of the lower rate refers to the delivery of natural gas, including feeses for that delivery, heating from thermal stations, including fees related to that delivery, and deliveries of firewood, pellets, briquettes and wood chips.
Applying a lower VAT rate to energy products
The Value Added Tax Act entered into force on April 1, 2023. The application of the lower VAT rate of 5% to the mentioned groups of energy products Parliament determined by the previous law until March 31, 2023, but the new law extends it for one year, i.e. until March 31, 2024.
Therefore, it is necessary to remember that on deliveries listed below, performed until March 31, 2024, VAT is calculated and paid at a reduced rate of 5%:
natural gas, including fees for that delivery
heating from thermal stations, including fees for this delivery