The federal government is working to permanently reduce the value-added tax on gas and electricity from 21 to 6 percent. How much less will you pay?
The value-added tax on gas and electricity had been cut to 6 percent for about a year, but that was a “temporary” measure to lower energy bills in the context of skyrocketing energy prices. Starting April 1, this rate will become permanent. At the same time, tax reform will come into force.
According to consumer organization Testaankoop, the average household will Pay €16.5 less than in the past, when the VAT was still 21 percent (38.5 euros less thanks to the VAT reduction and 22 euros more due to excise duties).
“And that saving will increase if energy prices go up and output charges come down,” says Testaankoop. After all, the excise reform includes a mechanism whereby the excise duty on part of the consumption (the so-called basic consumption) is lowered when energy prices exceed certain ceilings.
For natural gas, the excise duty (for so-called extra consumption) can go up if the price falls sharply. For contracts with a social rate, the excise tax reform will only come into force on July 1.
Social tariffs for electricity and natural gas rise again
Social charges for electricity and natural gas will rise again on April 1, at 7.7 percent for electricity and 9.5 percent for natural gas. This is the fourth consecutive increase in social tariff rates, which are set quarterly by federal regulator CREG.
One price for electricity from April 30,782 cents per kilowatt hour, including value added tax. The social rate for natural gas goes to 4084 cents per kilowatt hourincluding value added tax.
A social rate is a discounted rate for certain categories of people or families, for example people who are entitled to a living wage, residents of social housing or seniors with income security. It is estimated that 2 million Belgians are entitled to it. The rate is the same for all energy suppliers.
Home battery premium will be cancelled
Anyone who installs a home battery with an AREI test certificate will no longer receive this as of April 1st. The Flemish government has decided to expedite the reduction of these premiums.
With the disappearance of the reverse meter and rising energy prices, the sale of home batteries has been on the rise. With such a home battery, families with solar panels can store self-generated electricity that they don’t use immediately for later use.
Flanders also made payments for home batteries. This premium amounted to a maximum of 40 percent of the total investment cost, up to a maximum of 1,725 euros. However, last year it was decided to reduce the premium faster than previously announced. According to Flemish Energy Minister Sahel Demir, an assessment showed that the subsidy is “not really necessary to encourage citizens to invest in a home battery”.
The government wants to use the released funds to support investment in a heat pump boiler for domestic hot water generation, a ‘thermal’ battery.
Buying a house in Brussels will be tax efficient
From the 1st of April, it will be tax efficient to buy a house in Brussels. The “poverty reduction” in Brussels will then be increased from 175,000 euros to 200,000 euros. This allows buyers Save 25,000 euros On the first bill of 200,000 euros.
The allowance is a reduction in registration fees when buying a first home or building plot. As of April 1, the allowance amounted to €175,000 for the purchase of the family home. In order to give more families in Brussels access to a home, this allowance will be increased to €200,000. Instead of a discount of €21,875, families will enjoy a discount of €25,000 from April 1.
Furthermore, the current ceiling of €500,000 will be raised to €600,000. Thus, anyone who buys a house worth €600,000 is still eligible for the tax advantage. For built-up land, on the other hand, an allowance of 87,500 euros applies, which will be increased to 100,000 euros on April 1st. In addition, there will be additional charges for major power renewals. This relates to €25,000 for each improvement achieved in the energy class. The number of energy categories to which the parties are bound must be at least two.
The conditions for entitlement to benefits will also be relaxed. Those who want to be eligible for the benefit will have to move home within three years (instead of two). For buyers applying for an energy efficiency surcharge, the operating period is extended to five years. Finally, buyers who have not lived in their home for five years will not have to pay the entire premium, but an amount must be adjusted to the number of years they have lived in their home.
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