The VAT on electricity will return to the general rate of 21% from next June 1. The measure comes due to the moderation of inflation and will mean the end of the tax relief applied to the electricity bill in recent months
The Royal Decree-Law 7/2026, of March 20, which gave the green light to the Comprehensive Response Plan to the Crisis in the Middle East, included a temporary reduction in the VAT on electricity from 21% to 10% as part of the package of measures to cushion the energy impact derived from the conflict. That same regulation established that, "as these are exceptional measures, the reductions in rates during the month of June 2026 are subject to the evolution of the consumer price index of the affected products".
A temporary aid that expires while new measures are still being considered
The already foreseen end of this reduction coincides, however, with a political and social debate that points in the opposite direction: whether families continue to need support against the energy cost.
The PSOE candidate for the Junta de Andalucía, María Jesús Montero, promised this week, at an informative breakfast organized by Europa Press in Seville, an Andalusian plan to combat the energy crisis derived from the war in Iran if she reaches the regional government. Among the announced measures is a check for between 150 and 350 euros for middle and low-income families, in addition to reinforced support for vulnerable households, supplements for the unemployed or people on ERTE, and a line of guarantees for SMEs and self-employed workers.
The proposal introduces an evident political contrast: while state tax relief approved as an extraordinary mechanism expires, new forms of economic support continue to be proposed on the grounds that the energy impact continues to pressure households and businesses.
Consumers have been demanding lower electricity taxation for some time
That debate is not new. Consumer associations such as FACUA have argued on different occasions that electricity should maintain reduced taxation structurally, as it is a basic supply for households.
The argument of these organizations is based on the consideration that electricity should not bear a tax burden equivalent to that of other non-essential goods, especially in scenarios of inflationary pressure or energy price increases.
The Government, however, designed the March reduction as a temporary and extraordinary measure, not as a permanent reform of the tax treatment of electricity.
From June 1, therefore, the bill will return to the ordinary framework of 21%, while a discussion remains open that mixes fiscal policy, cost of living, and the real scope of the aid needed to cushion the energy impact on households.