The National Assembly votes in favour of reducing VAT on small supply contracts

The National Assembly adopted an amendment to the 2026 draft budget proposing to restore the reduced VAT rate of 5.5% on the subscription portion of electricity supply contracts for customers with a power rating of 36 kVA or less. The government estimates the cost of the measure at €900 million. The general rapporteur for the budget pointed out that lowering the VAT on the subscription would also mean lowering the rate on the supply portion, as European law does not allow different VAT rates to be applied to the same delivery. In this case, the cost of the measure would rise to €5 billion.