Value Added Tax on Gasoline Deliveries: SO Much Money You’re Saving Now

Updated: 08/19/2022 – 12:55 p.m.

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Gas Value Added Tax Drops: Here’s How Much You’ll Save On Your Bill Now


Photo: IMAGO / Christian Ohde

Value added tax on gas is to be reduced from 19% to 7%. But does this measure bring the desired relief?

Energy prices are rising and, at the same time, the gas tax is increasing the burden even further. In order to provide relief, the government wants to reduce VAT for a limited period. But what does this actually mean for your next gas bill?

As if energy prices weren’t high enough already, many Germans will also have to pay the gas surcharge from October. Costs that most German households will soon no longer be able to bear. In order to ease the burden on citizens during this period, the federal government is reducing the value added tax for gas from 19% to 7% previously. But what does this measure actually mean for all consumers who have gas heating? Are they really relieved at the end of the day?


Here’s how much money you save by reducing VAT on gas


In order to relieve consumers in view of the high energy costs, including the gas surcharge, Chancellor Olaf Scholz (SPD) announced that he would reduce the value added tax on gas from 19% to 7%. This relief measure should take effect from October 2022 and expire at the end of March 2024. According to the Chancellor, the burden on German households should be considerably reduced. But is it really like that? The comparison portal Verivox also asked itself this question. In order to find out whether the new measure will have the hoped-for relief effect, the comparison portal has calculated the savings for a family with two children.


The portal assumes a consumption of approximately 20,000 kilowatt hours of gas. With such consumption, a model family would pay 3,717 euros for gas per year. However, the new gas surcharge is still missing from this amount. At the normal VAT rate, an additional 576 euros would be added. Since gas VAT will be reduced to 7% from October, the family of four will save around 433 euros.

Other households can expect to realize the following savings:

  • 119 euros savings: Single-family household with 5,000 kilowatt hours
  • 266 euros savings: Torque at 12,000 kWh
  • 391 euros savings: Family with child at 18,000 kilowatt hours
  • 433 euros savings: Family with two children in a 20,000 kilowatt-hour terraced house
  • 746 euros savings: Family with at least three children in their own house with 35,000 kilowatt hours


Does the VAT reduction fully offset the gas surcharge?


In his announcement, Chancellor Olaf Scholz claimed that the relief from the VAT reduction would be significantly higher than the burden of the levy itself, but is that really the case? According to experts, this is not the case. If we look more closely at the example with the family home, the relief would have to be greater than 518 euros to offset the gas surcharge of 2.419 cents. According to Verivox calculations, it is only 433 euros. Despite the relief, the family still has to pay 85 euros more per year. Even though many consumers still have to pay a little extra at the end of the year, the reduction in VAT brings a total relief of 10% – at least.


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Sources: tagesschau.de, swr.de and wdr.de


High energy prices will present many Germans with major challenges. After all, most of them can no longer pay their monthly electricity bill. But what happens when you can no longer pay the electricity bill? Will the electricity then be cut off?


While the federal government is keeping a low profile on new relief, economists have a very clear idea of ​​how to relieve Germans given high energy prices. They require an energy package of 100 euros per person – every month!


When it comes to energy aid, politicians must act quickly. Because the impending gas shortage will probably soon be felt particularly hard by consumers. The Federal Network Agency warns of a tripling of gas prices.


To ensure you can always pay your next gas bill, you need to save gas diligently now. The good news is that it’s not that difficult. Every less minute we spend in the shower saves 0.4 kilowatt hours of gas. But when it comes to hot water, there are even more ways to save. We have summarized for you what are: How to save hot water in the household.


Need more energy saving tips? These five tips will save you money in the summer.


You can also find many useful tips and tricks on how to save energy on our Clever Saving Tips topic page.



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