Electricity VAT: November’s reduction threshold is not met

What was announced

Royal Decree-law 25/2026, published on 30 September, makes November’s reduction to 10% electricity VAT conditional on September’s electricity price index exceeding September 2025 by more than 15%. As checked on 19 October, AEAT’s electricity-tax table states that this threshold was not exceeded. Applying the same condition in Article 18 leads to the conclusion that this VAT reduction is not triggered for November; this is not a new legal amendment.

December is assessed separately. Article 19 requires October’s electricity index to exceed October 2025 by more than 15%, using INE information published in November. September’s outcome neither confirms nor rules out December’s reduction.

If that price condition is met, eligible contracts include contracted power of no more than 10 kW and social electricity tariff recipients classified as severely vulnerable or severely vulnerable at risk of social exclusion. This is contracted supply power, not solar-panel capacity. Spanish VAT applies to mainland Spain and the Balearic Islands; the Canary Islands, Ceuta and Melilla are outside its territorial scope.

Do not confuse VAT with the separate Special Tax on Electricity. For the latter, AEAT lists 5.11269632% for November, rather than the conditional 0.5%. When budgeting for heat pumps, charging or solar, do not assume 10% VAT under this mechanism in November. Check the period and tax on your bill; this rule does not set VAT on equipment purchases or installation.