PoliticsFederal Council approves gas VAT reduction

Federal Council approves gas VAT reduction

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Reducing the value-added tax on gas and district heating, extending the short-time working allowance: all the decisions of the Federal Council at a glance.


Federal Council, provisional VAT deduction on gas. So retrospectively, from the beginning of October to March 31, 2024, it will only be seven percent instead of the usual 19 percent. The Federal Council declared that companies “must pass all discounted VAT to consumers to avoid high energy costs”.

Other decisions taken by the Federal Council today:

  • HE Short Term Working Grant If it is to be extended, the federal government may extend it by the middle of next year by decree. The special corona rule has so far been implemented until the end of September.

  • Tax and duty free corporate payments employees are now possible. “To reduce rising consumer prices,” employers can offer tax-free rebates and benefits in kind by the end of 2024, “in addition to wages already owed”, up to 3,000 euros.

  • corona For example, it is specifically excluded from the list of communicable infectious diseases in the Infection Protection Act, which prohibits entry in schools or nurseries.

  • marital status data can be submitted online via a management portal to the responsible registry office. This then exchanges information with the other authority – data is saved only once. This means that registries can do without paper proof in some cases.

  • most religious affiliation will no longer be entered in the marital status register. The Bundestag had approved it last week, it was supposed to go into effect on 1 November. The deletion was justified, among other things, by an additional effort for the authorities.

  • restaurateurs can continue to look forward to low VAT on food. Given the energy crisis looming in Germany, the Federal Council approved on Friday that the tax will be reduced to seven percent by the end of 2023. Drinks are still excluded.

Source: ZDF

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