In order to cushion the burden on citizens from the increased gas prices, the draft law provides for the VAT rate on the supply of gas via the natural gas network to be reduced to 7 percent from October 1, 2022 to March 31, 2024.
VAT is designed to be passed on to the citizens by the taxable companies. If it is passed on in full, a corresponding price reduction and thus a noticeable relief for the citizens is made possible. The Federal Government expects that the taxable companies will pass on this reduction 1:1 to the citizens.
Source: bundesfinanzministerium.de
