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Lower VAT on gas may not expire until the end of March

  • The reduced VAT rate for gas and heat could expire at the end of March instead of the end of February.
  • The energy industry is urging the government to extend the tax reduction until the end of March to provide relief for households during the heating season.
  • The government reduced the VAT rate for gas and heat from 19% to 7% due to increased energy prices after the Russian attack on Ukraine.
  • The Wachstumschancengesetz, which includes tax relief for companies, is currently stuck in the mediation committee between the Bundesrat and Bundestag.
  • The SPD expects the tax reduction to remain in place until the end of March, as the necessary amendment to the VAT law was not passed by the Bundesrat.
  • The energy industry is calling for planning security and opposes a retroactive change in the VAT rate.
  • The industry argues that a retroactive change would be complex and difficult to implement, and it would be unfair to customers.
  • The energy industry suggests dropping the proposed early expiration of the VAT reduction in the mediation committee and letting it expire as planned at the end of March.

Source: haufe.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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