German finance minister writes to Brussels over VAT exemption for gas levy

 German finance minister Christian Lindner has written to the European Commission seeking permission to waive value-added tax on a new gas price levy for a limited period of time, a copy of his letter seen by Reuters showed on Sunday (14 August).

Germany’s gas market operator is set to announce on Monday (15 August) the size of the levy, which Berlin is imposing on all gas consumers to spread the additional cost of gas imports.

The levy is aimed at helping Uniper and other importers cope with soaring prices due to reduced Russian export flows, but it would add to already sky-high energy prices and inflationary pressures for customers.

Under EU law concerning VAT on energy products, the levy is considered a component of the overall gas price, effectively meaning it is mandatory, which is why Germany needs to ask for Brussels’ permission to waive it. (...)