ARTICLE · 30 JUNE 2025

German Tax Update – 20 June 2025

Alvarez & Marsal

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The European Court of Justice (ECJ) has reiterated that EU Member States may only levy extra charges on electricity in strict circumstances and has confirmed – rather than introduced...

GermanyTax

Clemens Petersen

Matthias Luther

Anastasia Büttner

ECJ - C-645/23 - Hera Comm¹ – ECJ Confirms Conditions for Additional Energy Charges and Reaffirms Extended "Reemtsma" Refund Rights

The European Court of Justice (ECJ) has reiterated that EU Member States may only levy extra charges on electricity in strict circumstances and has confirmed – rather than introduced – the broader refund principle previously established in decision in Gabel Industria Tessile and Canavesi from 2024².

Why does the case matter?

EU law harmonises excise duties on products such as electricity, fuel and alcohol. Member States may add "other indirect taxes" on top of these duties, but only if the levies are clearly defined, serve a specific non-budgetary purpose (for example, an environmental objective) and respect EU procedural safeguards.

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