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Decree Law No. 60/2019


Publication: Republic Diary No. 91/2019, Series I of 2019-05-13
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 60/2019
  • Pages: 2418 - 2418

Summary in plain english

What is it?

This decree-law amends the Added Value Tax (VAT) Code, altering the tax rate to be applied to some electricity and natural gas supplies.

What is going to change?

The VAT’s reduced rate is now applied to a part of the price (identified in the invoices as network access fee) to be paid for the supply of electricity and natural gas, provided that the consumers:

    • In the case of electricity, do not contract a power higher than 3.45 kVA; and
    • In the case of natural gas, do not exceed the annual consumption of 10.000 m3.

The VAT’s reduced rate is:

    • 6%, in the mainland;
    • 4%, in the Azores;
    • 5%, in Madeira.
What advantages does it bring?

This decree-law, by reducing the VAT rate applicable to the electricity and natural gas supplies:

    • protects the consumers, reducing the weight of the taxes on the final price to be paid;
    • promotes the energy efficiency and the environmental protection.
When does it enter into force?

This decree-law enters into force on 1 July 2019.

The VAT’s rate reduction will only be applied to the price regarding the electricity and natural gas’ consumptions after this date.

Original Version

LEGAL TRANSLATOR

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CONSOLIDATED LEGISLATION

Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.