“It’s kind of unfair”: why is the VAT on propane gasoline nonetheless at 21% when it has been decreased to six% for pure gasoline and electrical energy?

“It’s kind of unfair”: why is the VAT on propane gasoline nonetheless at 21% when it has been decreased to six% for pure gasoline and electrical energy?

A lot of you have got contacted us through the orange Alert us button to denounce “discrimination” associated to the VAT fee on propane gasoline. This remained at 21%, whereas it was decreased to six% for pure gasoline and electrical energy. How can this distinction be justified? Is there actually discrimination? What makes propane gasoline completely different from the remainder?

“We’re informed that gasoline has solely been taking place since June, why is bulk propane gasoline solely going up? Why does pure gasoline have 6% VAT and never propane, which has 21%?”Serge wonders. “Propane is costlier than metropolis gasoline and our support is €250, whereas on the town it’s a whole cumulative support over 5 months of €750”says Hadrian. “VAT has dropped from 21% to six% on electrical energy and pure gasoline, however why hasn’t it dropped on bulk propane deliveries?”asks Vanessa for her half. “The 6% VAT discount solely applies to pure gasoline and to not propane gasoline”insists Jean-Christophe once more.

A lot of you pushed the orange button Alert us to report “discrimination” between individuals heating with pure gasoline and people utilizing propane gasoline. The VAT on metropolis gasoline has certainly been decreased to six%, whereas that of propane gasoline has remained at 21%.

Individuals who have city gasoline have 6% VAT and why ought to we pay 21% VAT?

A scenario that Thomas, a resident of Nassogne, within the province of Luxembourg, doesn’t perceive. When he moved into his nation house, he had no alternative however to show to propane. City gasoline not passing by means of his road and the oil tank now not being the popular choice, he opted for an underground gasoline tank. “The warmth pump is sort of costly. And after I had it constructed, it was not the choice I selected”he mentioned.


Solely then, in two years, he noticed the value of his propane gasoline continuously improve. Whereas he paid 0.3944 euro/litre excluding VAT on the time, right now, for 1000 liters he has to pay 885 euros, or round 0.70 euro/litre excluding VAT. “It is virtually double”he exclaims. And it was throughout his final gasoline command that Thomas seen an anomaly: “I ordered 1000 liters and I noticed that I had 21% VAT. Actually, it was my mom who pointed it out to me… It is nonetheless not regular. Individuals who have metropolis gasoline have 6% VAT and why ought to we pay 21% VAT? It should be the identical for everybody”he throws.

For him, this distinction between the 2 merchandise will not be regular. “We’re promised loads of issues and solely a sure a part of the inhabitants actually advantages from it. It’s kind of unfair”Thomas provides.

Why this distinction?

To elucidate this distinction in VAT between pure gasoline and propane gasoline, we turned to the FPS Funds which informs us that VAT is a European matter. Member States should due to this fact depend on a European directive to presumably apply a decreased fee of VAT. “At current, the decreased fee of 6% can solely apply to pure gasoline distributed in pure gasoline networks”says the spokesperson, Florence Angelici.

The explanation ? “Safety of transport is taken into account extra essential for pure gasoline”she continues. In different phrases, pure gasoline could be a manner “extra positive” solely propane gasoline to be distributed.

F- Angelique

As these explanations didn’t appear ample to us, we contacted Olivier Neirynck, spokesperson for the Belgian Federation of Gasoline and Gasoline Sellers (BRAFCO). He remembers the distinction between pure gasoline and propane gasoline: “Propane gasoline, although it’s gasoline, is liquefied petroleum gasoline. It is without doubt one of the fractions extracted in the course of the refining of crude oil. Not like pure gasoline which is extracted from the bottom and offered as is. These are methane molecules.”

They’re due to this fact two completely different power markets. They’re additionally rated in a different way and managed in a different way by way of laws. “All petroleum merchandise (propane, heating oil) have a compulsory 21% VAT with decreased excise duties, in keeping with European agreements”factors out Olivier Neirynck. The European directive for propane gasoline – derived from oil due to this fact – may be very tough to maneuver, in contrast to pure gasoline and electrical energy, for which there are European agreements permitting every Member State to “play on the VAT fee to be utilized” and thus to scale back it, as has been the case with us for a couple of months with the 6% VAT. “That is the explanation why there was no discount in VAT on propane, however the granting of an power test of 300 euros”factors out the BRAFCO spokesperson.


Be aware additionally one other essential distinction between these two kinds of gasoline: the value. “It hasn’t elevated the identical manner for pure gasoline because it has for propane in any respect.” For pure gasoline, the value has multiplied by 5, whereas it has multiplied by 1.6 to 1.8 for propane. “So all motive stored, the extent of support in keeping with the kind of power should nonetheless be differentiated in relation to the rise that there was. Propane has elevated considerably lower than pure gasoline and due to this fact, it’s logical that there ought to be differentiated support for these two merchandise”develops our interlocutor.

If the 6% VAT fee had been to proceed for pure gasoline and electrical energy, the federal government would then should take new choices. “to keep away from any discrimination between heating energies and proceed to assist individuals who warmth themselves with propane and oil.” However lowering the VAT to six% for propane gasoline would take months of negotiations and discussions, and the measures are wanted instantly. And it’s at present not on the agenda, he concludes.

#bit #unfair #VAT #propane #gasoline #decreased #pure #gasoline #electrical energy

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