As a result of a price jump after the Russian war of aggression on Ukraine, a reduced VAT rate has been in effect on gas deliveries since October 2022. This will soon be over.
Consumers will have to prepare for higher gas prices from April. The temporary VAT reduction expires at the end of March. “The full VAT rate will suddenly increase the price of gas by 11 percent,” said Thorsten Storck, energy expert at the comparison portal Verivox. Steffen Suttner, Managing Director of Energy at the comparison portal Check24, also said that the increase in VAT from seven to 19 percent will significantly increase energy costs for consumers from April.
Kerstin Andreae, General Manager of the Federal Association of Energy and Water Industries, said: “The temporary reduction in VAT on gas and heat was an important instrument during the energy crisis to relieve the burden on consumers.” As a result, a household in an average single-family home with an annual consumption of 20,000 kilowatt hours of gas, for example, saved around 550 euros. However, thanks to the recent fall in energy prices, it is justifiable to now allow this relief instrument to expire.
In order to cushion the high energy prices as a result of Russia’s war of aggression on Ukraine, politicians reduced VAT on natural gas deliveries and district heating. From October 2022, a VAT rate of 7 percent applied. The measure was limited from the outset until March 31, 2024.
Source: Stern
