Gas surcharge: Exemption from VAT is hardly legally possible

Created: 08/10/2022, 16:53

By: Lisa Mayerhofer

From October, the gas surcharge will result in hefty price increases for consumers - the federal government therefore wants to at least relieve the burden on value added tax.

But that will be difficult.

Berlin – Gas customers will have to pay a lot more for their consumption from autumn.

From October, gas importers such as Uniper and RWE will be able to pass on most of their high additional costs through the gas surcharge.

With the levy, the federal government wants to maintain “supply security for the citizens and the economy”.

However, the government is also examining whether the VAT that would be due for the surcharge can be waived.

Gas levy: Exemption from VAT legally difficult

However, it is not that easy: Federal Minister of Economics Robert Habeck (Greens) told the

that the process was legally complex.

But he hopes that the Federal Ministry of Finance (BMF) will find a way.

The Parliamentary State Secretary in the BMF, Katja Hessel (FDP), told the AFP news agency: “We definitely want to avoid an additional burden on gas customers.

We are working flat out on a solution and in doing so we have to observe EU legal requirements in particular.”

Danyal Bayaz (Greens), Baden-Württemberg's Minister of Finance, doubts that this is possible on Twitter.

He writes on Wednesday that the EU VAT system directive, the German VAT law and case law would probably not allow a possible exemption from VAT.

He demands that the federal government should instead direct the VAT revenue from the gas levy to the people who need it most – such as low earners, families with low incomes, people with small pensions or BAföG recipients.

"There should be a nationwide moratorium on gas barriers," Bayaz wrote on Twitter.

Gas surcharge: Waiver of VAT could create enormous relief

The gas levy came into effect this week, and the exact amount is due to be announced on August 15.

Habeck had recently mentioned an order of magnitude of 1.5 cents to five cents per kilowatt hour.

Since the energy suppliers, such as the public utility company, can pass on the levy to end customers, private households are threatened with annual additional costs of over 1000 euros in addition to the increased gas prices.

According to calculations by the comparison

, a reduction or complete suspension of VAT on the gas surcharge could result in a price difference of up to 300 euros.

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The allocation is "not an easy step," admitted Habeck.

"But it is necessary to secure the heat and energy supply in private households and in the economy." The aim is to prevent insolvencies and supply failures in the gas supply.

Russian natural gas supplies had recently collapsed.

Therefore, importers have to source the raw material from other countries – at significantly higher prices.