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VAT reduction on electricity bills comes into force from 1 December

The change applies to all households in Finland and is valid from 1 December until the end of April.

Households will also be able to apply for a tax deduction if their total electricity bill from 1 January to 30 April exceeds 2,000 euros. Image: Jani Aarnio / Yle
Yle News

Households in Finland will receive a Value Added Tax (VAT) reduction on their electricity bills as of Thursday 1 December.

In an effort to alleviate the pressure brought on by inflation and rising energy costs, the VAT levied on electricity will be temporarily reduced to 10 percent, from the previous rate of 24 percent.

The change will be in effect between 1 December and 30 April, meaning that it will only begin to show in consumers' bills from January.

The reduction will only apply to households' electricity costs and will not take into account other separate charges such as the cost of electricity transmission for example.

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