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European Tribune - German Electricity Prices
a tax over a tax, how common is this? Curious minds want to know -apparently (not confirmed) European guidelines forbid taxation across taxation.

VAT on other taxes on the electricity bill is standard in France. I remember when it was introduced (sometime under the Jospin government ie 1997-2002) then Finance Minister Dominique Strauss-Kahn answered questions and protests by saying that it was in application of EU law. I have no further confirmation of that, but it's certainly enshrined in French law.

Our household electricity bill works out, in percent, at about 70% subscription (meter charge) + consumption, and 30% taxes. Of those 30%, roughly half is VAT, which applies to all other items on the bill.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Jul 3rd, 2013 at 02:54:00 AM EST

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