The 2019 Finance Law exempts Value Added Tax on certain consumptions. Some customers think that Eneo does not apply the text properly. Thus, for example, for a bill of 300 KWH, they think that Eneo should apply the VAT only on 80 KWH, leaving out the first 220 KWH.
.
What is exactly written in the 2019 Finance Law in its article 128 paragraph 9, is: « Shall be exempted from Value Added Tax, water and electricity consumptions of households when the latter do not exceed: 220 KWH per month for electricity and 20 m3 per month for water»
NB: « consumptions when the latter do not exceed 220 KWH ». Hence, if these consumptions exceed 220 KWH, they are not exempted.
Thus, we think there was certainly a misunderstanding of this text. For the case mentioned in the question, the consumption that stands at 300 KWH exceeds 220 KWH, the entire 300 KWH will not be exempted (VAT will be applied to the entire 300 KWH).
This exemption, as the law states, applies only to households. Hence, an Eneo customer who uses energy for business or industry supply needs will not benefit from this exemption.
This law concerns only the application of the VAT, and has nothing to do with electricity tariffs. Tariffs are still those provided for in the decision of the Regulator (ARSEL) taken in May 2012. They have not changed until now.
When we compare these tariffs in force with the provisions of the 2019 Finance Law, we can thus come up with the table below for households.
|
Bracket |
Tariff (in FCFA) |
VAT |
|
From O to 110 KWH |
50 |
0 |
|
From 111 KWH to 220 KWH |
79 |
0 |
|
From 221 KWH to 400 KWH |
79 |
19.25% |
|
From 401 KWH to 800 KWH |
94 |
19.25% |
|
From 801 KWH to 2000 KWH |
99 |
19.25% |
It remains constant that the VAT collected by Eneo does not enter into its books. It is paid back entirely to the State, which carries out periodic tax audits at Eneo, like in all enterprises.
Finally, here below are our tips to electricity consumers to better enjoy this measure:
- Ensure that you have a single household for one meter, so as to contain your consumption within the untaxed margin;
- Get your meter from Eneo, if you do not have one yet;
- Save energy; control your consumption.
Non-adherence to these tips can lead to an increase of about 4% on consumption bills.
