There are two tax rates:
- €1* per unit (megawatt hour) for electricity supplied for business use
- €1 per unit (megawatt hour) for electricity supplied for non-business use, excluding domestic use.
Since supplies for domestic use are not subject to the tax, most of the taxable supplies will be liable at the business rate.
* Up to and including 31 December 2019, the rate was €0.50 per unit (megawatt hour) for electricity supplied for business use.
Determination of the Tax Rate
At the time that a supply is made the supplier is required to deem whether that supply is for household use (and so relieved from tax) or is taxable at a particular rate. The criteria for this determination are as follows:
- A supply is to be deemed for household use where it is supplied at a price specified for household use in the price tariff of that supplier.
- A supply is taxable at the rate for non-business use where it is made to a body identified to the supplier by Revenue. A list of these bodies has been provided to suppliers.
- Any supply that is not taxable at the non-business rate or not deemed to be for household use shall be deemed to be taxable at the rate for business use.
Provided those criteria are adhered to, the supplier is not liable for any underpayment of tax on a particular supply where after that supply has been made it is found to have been taxable at a rate higher than that used by the supplier.