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VAT on the gas levy: Christian Lindner asks for an exception in Brussels

2022-08-14T12:27:50.202Z

The federal government will levy a gas surcharge from October. Now the Minister of Finance has asked for an exception at EU level - so that consumers do not have to pay VAT on the levy.



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Minister of Finance Lindner: »VAT on government levies drives up prices«

Photo: Lisi Niesner / REUTERS

In a letter, Federal Finance Minister Christian Lindner asked the EU Commission for permission to waive VAT in the planned gas levy.

Germany will submit a corresponding application.

"VAT on state levies is driving up prices and is encountering increasing resistance from the population, especially in the current, extraordinary situation," the news agencies dpa and Reuters quote from a letter from the FDP leader to EU Economic Commissioner Paolo Gentiloni.

The letter, written in English, is said to be dated last Friday.

Lindner is therefore asking Gentiloni to use its right of initiative and give the EU states the opportunity not to levy 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.

The acceptance of the population is now crucial, according to Lindner.

"I would like to ask the Commission at this early stage to look favorably on Germany's application."

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, so that the state does not earn money from it.

However, he referred to European law, which speaks against it.

Up to 5 cents per kilowatt hour in addition

From October, the federal government will levy a gas surcharge to prevent importers from collapsing as a result of severely curtailed Russian gas supplies.

The importers can use this to pass on some of the additional costs when purchasing gas.

The Economics Ministry assumes that gas consumers, companies and private households, will have to pay an additional 1.5 to 5 cents per kilowatt hour.

For a household of four, this could mean additional costs of around a thousand euros - in addition to the price increases that have already taken place.

The exact amount of the surcharge is to be published on Monday.

wit/dpa/Reuters

Source: spiegel

All business articles on 2022-08-14

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