Spain Provides Temporary Reduction in VAT Rate on Electricity Supplies and Amends Deduction Limits for Film and Other Productions

The Spanish Tax Agency has announced a temporary reduction in the VAT rate on electricity supplies from 21% to 10% as provided by Royal Decree-Law 12/2021 in response to increased electricity prices. The reduction applies until 31 December 2021 where the average monthly market price exceeded EUR 45 / MWh in the previous month. Further, the reduction is limited to supplies of electricity where…
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