German government lowers VAT on gas to 7 percent

The German government will temporarily lower the VAT on natural gas to relieve consumers financially. The rate will go from 19 to 7 percent, German Chancellor Olaf Scholz announced.

He assumes that energy companies will pass on the tax reduction in full to the consumer. This measure would relieve consumers much more than they would be burdened by a proposed gas price levy. This will be introduced later this year.

Extra surcharge

As a result of the war in Ukraine, purchasing costs for gas importers have risen sharply. Gas importers can pass on the extra surcharge to customers from October. This applies to both individuals and companies. Initially, it will be an amount of around 2.4 cents per kilowatt hour.

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