Germany awaiting response from Brussels on VAT exemption for gas levy

Germany has not yet received a response to its request to the European Commission to waive value-added tax for a new gas price levy for a limited period of time, a finance ministry spokesperson said in Berlin.

Germany's gas market operator is set to announce on Monday the size of the levy, which Berlin is imposing on all gas consumers to spread the soaring cost of gas imports caused by a fall in Russian export flows.

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.