The German Government has issued a release on a temporary reduction in the VAT rate on natural gas. The release provides that, in view of the increase in natural gas prices, the VAT rate on gas consumption will be reduced from 19% to 7% until 31 March 2024. This was announced by Federal Chancellor Scholz on 18 August 2022, who also stated that companies are expected to fully pass on this tax reduction to consumers, and that this would be communicated clearly.