Supplies of electricity and natural gas are subject to two types of taxation:

• Excise duty, a state consumption tax, and the regional surcharge on excise duty (for natural gas supply only), which applies to electricity and natural gas supplies based on consumption (kWh/Smc);

• VAT, value-added tax, which is applied to the taxable amount, i.e., the total cost of the electricity and natural gas bill, including all components (including excise duties and regional surcharges, where applied).

Excise Duties

The regulations regarding excise duties are set out in Legislative Decree no. 504 of 26/10/1995 (Consolidated Law on Excise Duties), recently amended by Legislative Decree no. 43 of 28/03/2025, effective from 2026-01-01.

With regard to natural gas, the distinction between civil uses and industrial uses has been replaced by that between domestic uses and non-domestic uses.

Any use of natural gas intended for combustion in real estate units with a residential function and their appurtenances is considered domestic use.

Domestic use also includes the use of natural gas intended for:

a) combustion in the premises of:

1. public offices;

2. offices, including those of companies and businesses, located outside the plants, laboratories, and companies where the production activity is carried out, as well as professional studios;

3. credit institutions;

4. educational institutions.

b) combustion for the production of thermal energy, for the purpose of sale to third parties for domestic use;

c) filling the tanks of motor vehicles by means of systems derived from the distribution network of the same gas serving the properties referred to in the previous points.

Uses of natural gas other than domestic are considered non-domestic, including those intended for production plants or uses for the production of thermal energy, through cogeneration plants for district heating, even if intended for non-domestic users (only if the cogeneration plants have certain technical characteristics – Law no. 10 of 9/1/1991).

Excise_rates_EE_gas

VAT

VAT, governed by Presidential Decree no. 633 of 26/10/1972, applies to the total cost of the electricity and natural gas bill, including all components (including excise duties and regional surcharges on gas excise).

In relation to electricity supplies, the rate provided for domestic use is 10%.
For other uses, the rate is 22%.

In relation to natural gas supplies, the rate provided for domestic use is 10% limited to 480 cubic meters per year; above this limit, the 22% rate applies.

Excise Duty Tax Relief

Tax legislation provides for the application of excise duty relief for certain uses of electricity and gas.

Electricity Excise Duty Relief

For certain subjects, the legislation, following the issuance of a specific authorization by the Customs and Monopolies Agency, provides for consumption that is exempt or not subject to excise duties:

• recognized international organizations;

• diplomatic or consular supplies;

• NATO Armed Forces;

• purchasing workshops (obligated parties);

• companies that use electricity for the operation of railway lines used for the transport of goods and passengers;

• companies that use electricity for the operation of urban and interurban transport lines;

• companies that use electricity in mineralogical electrolytic processes;

• companies that use electricity for chemical reduction in electrolytic or metallurgical processes;

• companies that use electricity to create products where energy accounts for approximately 50% of the final cost.

Natural Gas Excise Duty Relief

Relief is provided in cases where natural gas is used for electricity production (cogeneration).

By way of example, the excise duty rate provided for non-domestic use can be utilized by subjects who use natural gas:

• in industrial activities that produce goods and services;

• in sports facilities for non-profit amateur activities;

• in hospitality activities carried out by institutions aimed at assisting the disabled, orphans, the elderly, and the indigent.

Furthermore, uses in the following are considered non-domestic:

• hotels, accommodation facilities, commercial distribution companies, restaurants, pizzerias, bars;

• libraries, galleries, museums, art galleries;

• cinemas, discos and nightclubs, concert halls, show and dance halls, theaters, and bathing establishments.

Relief is provided in cases where gas is used for electricity production (cogeneration) or is used by the National Armed Forces.

Finally, the following supplies are entitled to exemption from excise duties:

• supplies within the framework of diplomatic or consular relations, to international organizations;

• chemical reduction;

• electrolytic processes;

• metallurgical processes;

• mineralogical processes.

VAT Tax Relief

Electricity VAT Relief

The following are entitled to the application of 10% VAT:

• mining, agricultural, and manufacturing companies;

• operation of systems used by land reclamation and irrigation consortia;

• supply to wholesale customers.

The following are entitled to VAT exemption:

• consulates, diplomatic representations, embassies, UN, EU Institutions, military commands;

• exporters and reseller taxable persons.

Natural Gas VAT Relief

The following are entitled to the application of 10% VAT:

• consulates, diplomatic representations, embassies, UN, EU Institutions, military commands;

• exporters and reseller taxable persons.

The following are entitled to VAT exemption:

• consulates, diplomatic representations, embassies, UN, EU Institutions, military commands;

• exporters and reseller taxable persons.

Requests for relief can be sent to info@deloaenergy.it, together with a copy of the applicant’s identity document, using the appropriate forms.

IT Electricity Excise Duty Relief Request

IT GAS Excise Duty Relief Request

IT Electricity VAT Relief Request

IT GAS Excise Duty Relief Request

DE Antrag auf Befreiung von der Verbrauchsteuer (EE)

DE Antrag auf Befreiung von der Gasverbrauchssteuer

DE Antrag auf Mehrwertsteuerbefreiung (EE)

DE Antrag auf Befreiung von der Gasverbrauchssteuer