Check the reading on the gas meter!
Starting from April 1, 2024, gas customers in Germany will experience an increase in their monthly or quarterly installments due to a change in the value-added tax (VAT) rate for natural gas. The standard VAT rate, which was previously reduced, will return to 19%, leading to higher gas bills.
From March 1, 2024, Germany ended its domestic fuel VAT cut, implying that the VAT rate on fuels (including gas) will revert to the standard rate of 19% from a previously reduced rate applied during energy price relief measures. This means that from April 1, 2024, gas bills would be charged VAT at the full standard rate, not the reduced or exempted rate used during crisis interventions.
As a result, gas customers paying via installments would need to adjust their payments upward to reflect the higher VAT included in the gas price starting April 1, 2024. This means their monthly or quarterly installment amounts will be recalculated by gas providers to incorporate the full 19% VAT instead of the lower rate, leading to increased installments.
The adjustment would be handled by the gas supplier or utility company, which recalculates the VAT-inclusive cost of gas consumption and updates customer invoices accordingly. Customers should receive notification of these installment changes reflecting the VAT rate normalization.
It is recommended that gas customers read their gas meter on March 31 or April 1, 2024, for accurate billing under the new tax rate. Customers should promptly report the meter reading with the exact reading date for accurate documentation. In cases where the meter has not been read recently, estimated consumption values may be used for billing purposes.
The change in VAT for natural gas will affect the majority of gas customers in Germany. The initial billing level for the higher VAT rate is uncertain for customers with a gas meter. Additional government measures such as the abolition of the gas storage levy planned for 2026 may slightly affect gas costs later but are not directly related to the VAT adjustment in 2024.
In summary, gas customers in Germany adjust their installments after April 1, 2024, by paying higher amounts that include the restored standard VAT rate of 19% on gas, reversing the previous VAT reduction on fuels. This results in increased monthly or quarterly payments corresponding to the full VAT-inclusive gas price going forward. The adjustment is typically communicated and applied by the gas supplier based on updated tax legislation.
Upon returning to the standard VAT rate for fuel on March 1, 2024, gas customers in Germany will observe a rise in their monthly or quarterly installments due to the inclusion of the full 19% VAT rate in the gas price, starting from April 1, 2024. The adjustment in VAT rates within the industry, including finance, will affect the energy sector, leading to increased expenses for gas customers.
