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Spain Cutting VAT Rate From 21 To 5% On Natural Gas

Spanish Prime Minister Pedro Sánchez reportedly announced on 1 September 2022 that the VAT rate on natural gas will be temporarily cut from 21% to 5%. The rate cut will apply from October to December 2022 to support households and businesses in response to rising prices. The rate cut for natural gas is in addition to the temporary tax cuts for electricity, which includes a VAT rate of 5% on electricity supplies that also applies until the end of December 2022.