EU Commissioner rejects VAT exemption

Created: 08/17/2022, 13:56

EU Economic Commissioner Paolo Gentiloni speaks to journalists.

© Laurent Gillieron/KEYSTONE/dpa

At least the value added tax should be omitted from the gas levy decided by the traffic light government.

But now it is official: The EU Commission sees no legal possibility for this.

Brussels - The exemption from VAT for the planned gas surcharge desired by the federal government is finally off the table.

The current legal framework does not allow an exception for the gas surcharge, wrote EU Economic Commissioner Paolo Gentiloni in a letter to Federal Finance Minister Christian Lindner (FDP) on Wednesday.

It is also not possible for the Commission to propose derogations from the VAT Directive in this case.

This is only possible with procedural questions, but not when it comes to the amount of the tax, Gentiloni wrote.

The letter was available to the German Press Agency.

However, Germany has various other options to burden consumers less, wrote the Italian politician.

In this way, the federal government could subsequently pay back the VAT to consumers or reduce the levy.

It is also possible to let the tax benefit the gas companies.

Alternatively, the applicable VAT could be reduced to at least five percent, wrote the Commissioner for Economic Affairs.

In Germany, a VAT rate of 19 percent usually applies, the reduced rate is seven percent.

dpa