Increased vat: "your gas electricity: This article explores the topic in depth.
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Since August 1, a significant modification of taxation on electricity and gas subscriptions has entered into force in France. Nevertheless, The VAT applied to these subscriptions goes from 5.5 % to 20 %, a decision taken within the framework of alignment with a European directive of 2022. Moreover, Although the government has set up a compensation mechanism to increased vat: “your gas electricity mitigate this increase, some consumers will see their bills increase. Meanwhile, This situation arouses strong reactions, in particular from consumer associations and households concerned.
The reasons for the VAT increase – Increased vat: "your gas electricity
Until now, electricity and gas subscriptions have been subjected to 5.5 %VAT, while consumption was taxed at 20 %. Moreover, This distinction has been abolished to comply with a European directive. Furthermore, This prohibits the application of different VAT rate on inseparable elements of a service, such as subscription and energy consumption. Consequently, The 2025 finance bill has integrated this measure, involving a significant modification of household invoices.
This decision caused shields among consumer associations. Similarly, The National Federation of Families of France and the National Union of Independent Tenants (UNLI) have expressed their disagreement. Meanwhile, They criticize the uniform application of this measure on electricity and gas, without consideration for the social realities of users. Moreover, This standardization is increased vat: “your gas electricity perceived as a lack of taking into account the various needs of households.
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The compensation mechanism implemented – Increased vat: "your gas electricity
Faced with the potential impact of this VAT increase. the government has increased vat: “your gas electricity provided for a compensation mechanism. The objective is to neutralize the financial effect on consumers. Between August 1 and December 31, the excisees on energy will be reduced. Concretely, the decline amounts to 4.96 euros per megawatt hour for electricity and 1.75 euros for gas. This reduction comes while the excisees had been noted until the end of 2024 to compensate for the end. of the price shield.
According to the Ministry of Energy. this approach makes the evolution of neutral VAT for the state budget and, on average, for consumers. However, on an individual scale, certain variations in invoices are expected. Last February. an average drop in electricity prices by 15 % had been recorded, which could alleviate the effects of the new VAT.
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Differentiated impact on consumers
The energy regulation commission carried out a study. to assess the impact of the increase in VAT on households. For an average consumption of 4. 400 kWh per year, the subscription would increase by 23 euros including tax, while the variable share increased vat: “your gas electricity of electricity would drop by 27 euros including tax, resulting in a slight decrease in the annual bill of around 4 euros including tax. However, these figures are averages, and the effects may vary depending on the consumption profiles.
Households with low consumption, often the most precarious, could be more affected. For these homes, the subscription represents an important part of the invoice. This situation was underlined by Fabrice Coudour, secretary general of the FNME-CGT. On the other hand. large consumers of electricity could benefit from this reform, the share of the subscription being less significant in their global invoice.
The situation of gas consumers
For gas consumers, the situation is even more complex. The drop in the excise does not completely compensate for the increase in VAT on the subscription share. In addition, the “benchmark” price of gas increased by 3.30 euros per megawatt hour in August 1 compared increased vat: “your gas electricity to July. This double financial penalty arouses concerns among gas users who see their invoice increase despite compensation measures.
Consumer associations. such as the National Federation of Families of France and UNLI, believe that the measures put in place are not enough. They call for better taking into account the economic realities of households. especially the most modest, to avoid situations of fuel poverty.
While the new VAT policy on energy subscriptions is implemented, consumers are at an important crossroads. Will compensation mechanisms manage to balance the effects of this VAT increase? The question remains open, and the debate on energy policies in France promises to continue. How can the state. players in the energy sector better meet the needs of households, especially the most vulnerable, faced with these changes?
This article is based on verified sources and the assistance of editorial technologies.
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