With the gas levy, consumers should help importers. The federal government does not want to charge VAT on it. Now the EU Commission is clarifying the applicable rules.
For consumers in Germany there will be no exemption from VAT on the gas surcharge. The EU Commission confirmed in Brussels that a cancellation of the tax is not possible, contrary to what the federal government had hoped.
According to its own statements, the Commission is working together with Berlin on a solution regarding VAT. Federal Finance Minister Christian Lindner (FDP) had asked for an exception at EU level. However, a spokesman for the EU Commission made it clear: “There is no way to exempt this type of levy.” At the same time, he emphasized: “We are in contact with the German government to find solutions that would benefit consumers and have the same effect on them.”
The Federal Ministry of Finance said that no official letter from the EU Commission had been received so far. “Our goal is still to avoid additional burdens for the citizens.” The state should not generate any additional revenue from the sales tax on the gas levy. According to the ministry, various options are conceivable that would have to be examined under European law. Talks are being held with the EU Commission on this.
Habeck announces compensation mechanisms
It is unclear what options there are and when the Brussels authorities want to comment on them. The Commission spokesman said the EU Commission shares Germany’s wish that the measure should not have any unforeseen tax effects. “It’s an extremely important part.” Federal Minister of Economics Robert Habeck (Greens) had previously announced that he would create compensation mechanisms if no VAT exemption should be possible.
CSU regional group head Alexander Dobrindt calls on the federal government to immediately reduce the gas levy by 20 percent. “The government’s transparent stalling maneuver has failed,” he criticized. “It is shameless to want to shift the additional burdens for consumers to the EU with regret,” added Dobrindt.
Allocation with VAT around 0.46 cents higher
In order to support gas importers, customers in Germany will have to pay significantly more for their gas from autumn. The amount of the state levy will be 2.419 cents per kilowatt hour excluding VAT, as reported by Trading Hub Europe, a joint venture of the gas transmission system operators in Germany, on Monday. VAT would be an additional 19 percent of the 2.419 cents – that’s around 0.46 cents again.
For a one-person household with an annual consumption of 5000 kilowatt hours, the levy without VAT means annual additional costs of around 121 euros. With it would be around 144 euros. For a family household with an annual consumption of 20,000 kilowatt hours, the additional costs are around 484 euros per year. If VAT is added, it is 576 euros.
VAT exemptions not possible in the energy sector
Tax policy in the EU is primarily a matter for the countries, but there are framework conditions that everyone must implement. The regular VAT rate must be at least 15 percent, the reduced rate at least 5 percent. In Germany, a higher rate of 19 percent and a reduced rate of 7 percent apply. Since the beginning of April, according to EU rules, complete VAT exemptions have only been possible in certain areas such as food and other goods to cover basic needs – but not in the case of energy.
The tax rules must also be decided unanimously in the EU. Although the EU Commission can propose deviations from the VAT rules, these would have to be accepted by all EU countries.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
