It will be for German gas customers even more expensive: The EU rejected the VAT exemption for the gas surcharge. In return, the state can look forward to enormous additional income. Modern robber baronship?
In order to protect gas importers from bankruptcy, gas customers will be asked to pay properly from autumn. In addition to the ever-increasing gas prices, there is a gas levy of 2.419 cents per kilowatt hour excluding VAT. This was announced by Trading Hub Europe, a joint venture of the gas transmission system operators in Germany, on Monday. With VAT, 19 percent would be added to the 2.419 cents – that’s another 0.46 cents.
For a one-person household with an annual consumption of 5,000 kilowatt hours, the levy without VAT means annual additional costs of around 121 euros. With it would be around 144 euros. For a family household with an annual consumption of 20,000 kilowatt hours, the additional costs due to the levy alone are around 484 euros per year. If VAT is added, it is 576 euros.
It is now clear that VAT must be paid on the gas surcharge. “There is no way to exempt these types of levies,” a spokesman for the Brussels authority claimed on Tuesday. Since the beginning of April, according to EU rules, complete VAT exemptions have only been possible in certain areas such as food and other goods to cover basic needs – but not in the case of energy. Therefore, the federal government, together with the Commission, wants to find a way to return the money to the citizens.
With regard to that, for example Spain and Portugal have asserted themselves against the EU and are now the only member countries allowed to cap their electricity prices, However, the question arises as to how intensive the efforts to obtain the VAT exemption were.
Incredible additional revenue for the state
The fact is that the gas prices, which have risen sharply, are already making the state treasury ring, and the gas levy is even better. According to the industry association BDEW, household consumption last year was 310 billion kilowatt hours (kWh) of gas, with an average gross price of 6.56 cents per kilowatt hour, revenue from the 19 percent VAT on gas was around 3.3 billion euros. In the first half of the year, the average price for gas was already 14 cents per kilowatt hour – further increases are expected. At this price and with the same consumption, households would already pay more than 6.9 billion euros in VAT, i.e. more than 3.6 billion euros more than in 2021. The planned gas surcharge, initially at 2.4 cents per kilowatt hour, will add an additional 1.4 billion euros annually bring in – the state would have total additional income of a whopping 5 billion euros.
Now the gas customers should first pay the VAT on the gas levy and then supposedly get it back somehow – compensation mechanisms should be created if no VAT exemption should be possible, Federal Minister of Economics Robert Habeck (Greens) had announced. However, it is to be feared that those affected will then be dealt with again with alms, if at all. The traffic light government clearly has no interest in relieving the burden on the citizens. How else could the additional burden caused by the unsocial gas surcharge be explained? Why does the average citizen have to support gas importers, many of whom previously made billions in profits? At the same time, price declines never come as a relief for consumers – we reported: “They want to expropriate us: natural gas is actually at a low price level in 2022”
Also, the sovereignty of the nation states seems to be more and more abolished by the EU. The governments of the member states will probably soon no longer have anything to decide: Big steps are being taken in the direction of a “United States of Europe” (or rather “EUUSSR”, as critics like to joke). In the best Germany of all time, not only the government, but also the Moloch EU is constantly creating additional burdens for the citizens – in the Middle Ages it was called robber baronship.