Value-added tax on natural gas is to be reduced from 19 to seven percent. The reduction should apply until March 2024. Chancellor Olaf Scholz (SPD) announced this in a press conference called at short notice.
The step would relieve gas customers overall significantly more than they would be burdened by the state gas surcharge, said Scholz. However, that depends on how much customers pay for their gas.
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He expects companies to pass the tax cut on to consumers one-to-one, said the SPD politician. “This is another step towards relief.”
The background to the measure is the gas levy, which importers can use from October to pass on increased procurement costs to consumers as a result of the Ukraine war. All gas users will then have to pay, whether private individuals or companies – initially around 2.4 cents per kilowatt hour. Value added tax also applies to the levy.
The federal government actually wanted to prevent this and thus ensure that the state did not earn part of the levy. According to European law, however, there is no provision for waiving VAT.
The legal framework allows for no exceptions, wrote EU Economic Commissioner Paolo Gentiloni in a letter to Finance Minister Christian Lindner. However, the federal government has the option of reducing the applicable VAT to the EU minimum rate of five percent.
A first sample calculation by the comparison portal “Check24” assumes possible savings of 375 euros through the reduction in VAT for a model household (family with two children) with an annual consumption of 20,000 kilowatt hours. Instead of 3717 euros, this model household would then pay 3342 euros a year. The basis is the current average price for natural gas.
From October, this household will also have to pay 518 euros more due to the gas surcharge of 2.419 cents per kilowatt hour. At 19 percent tax, 576 euros would be due.
A family with three or more children and their own house (35,000 kWh per year consumption) would spend 644 euros less on gas with the reduction in VAT – namely 5742 euros. The gas surcharge would add 906 euros. Additional burden here, despite the tax cut: 262 euros.
A family with just one child (18,000 kWh/year) would have to pay EUR 3,022 for gas in the future – EUR 339 less than with 19 percent VAT. However, there are additional costs of 466 euros due to the gas surcharge. This would not be completely offset by the reduction in VAT. There remains an additional expenditure of 127 euros.
A married couple with an annual consumption of 12,000 kilowatt hours would receive a reduction of 231 euros in the example calculation. The gas surcharge due to a reduced VAT is then still 311 euros – 80 euros more than the relief on the gas price brings out.
The single household (5000 kWh) would be relieved of the gas price by 105 euros. The additional costs due to the gas surcharge still amount to 129 euros with a seven percent VAT in October. Additional charge: 24 euros. In addition – depending on the supplier – there can be more than 100 euros for the costs of the so-called control energy.
