German Federal Cabinet Approves Legislation to Reduce VAT on Natural Gas, Adjust Individual Income Tax Brackets, Repeal German-nexus IP Rules, and More

On 14 September 2022, the German Federal Cabinet approved several pieces of draft legislation, including the following as announced by the Minister of Finance:

• the draft Act to temporarily lower the sales tax rate on gas deliveries via the natural gas network, which reduces the VAT rate on natural gas to 7% from 1 October 2022 to 31 March 2024;
• the draft Act to compensate for inflation through a fair income tax rate and to adapt other tax regulations, which amends the individual income tax…