Status: 08/14/2022 12:31 p.m
The federal government wants to waive the value added tax in the gas levy. But this requires an exception from the EU. Finance Minister Lindner has now written to the Commission asking for approval.
Federal Finance Minister Christian Lindner has asked the EU for an exception so that Germany does not have to levy VAT on the state gas levy. In a letter to Finance Commissioner Paolo Gentiloni, which is available to several news agencies, the FDP politician writes: “VAT on state levies is driving up prices and is encountering increasing resistance from the population, especially in the current, extraordinary situation.”
The Federal Minister of Finance recently said that he – like Economics Minister Robert Habeck (Greens) – did not want to levy VAT on the gas levy that will take effect from October. However, he referred to European law, which speaks against it. It is about the VAT system directive of the EU, which leaves no other option.
Lindner is now asking Gentiloni to use his right of initiative and give the EU states the option of not levying VAT on government levies in the energy sector for a while. Irrespective of this, Germany will apply for an exception under Article 395 of the VAT Directive.
Gas surcharge from October
Important gas supplies have been restricted since mid-June. According to Lindner, German gas importers would therefore have to bear high extra costs in order to obtain gas from other sources and still be able to serve their customers. This would result in substantial losses and the risk that systemically important corporations could collapse. “Rising energy prices are a threat to our prosperity and stability.”
The federal government has therefore decided on a gas levy, the exact amount of which is to be published on Monday. It is intended to stabilize the importers who have gotten into trouble and is scheduled to run until April 1, 2024. A level of between 1.5 and five cents per kilowatt hour is planned for end consumers. For a household of four, this could mean additional costs of up to 1000 euros – in addition to the price increases that have already taken place.