The Utility Tax Avoidance Program (UTAP) is a great way for eligible DoD personnel (who reside in housing on the economy) to save money on utility bills. UTAP legally allows you to avoid paying German tax on certain utilities. With UTAP, you can save up to 19% value-added tax on electricity and natural gas and 7% on water. This program can save you and the US Government hundreds of dollars annually on your utilities.
US Armed Forces members, military and civilian, fall under the current Status of Forces Agreement (SOFA) with Germany and are entitled to the tax-free delivery of electricity, gas, and/or water, when residing on the German economy. These utilities must be metered in the sponsor’s name in order for them to legally receive tax-relief. The utilities are taxed at 19% for electricity and gas, 7% for water. We currently have contracts with over a dozen German utility companies in and around the Kaiserslautern area.
In order to sign up for the utility tax-relief program, you will need to bring the completed UTAP application form, a copy of your orders, and your local banking information (your IBAN ‘DE + 20 numbers’) into the VAT Office. You will also need to bring in a copy of your rental agreement signed by the housing office or the deed if you own your home and a fee of $99.00. If other than the sponsor, you will need to bring a Power of Attorney.
Please read through the application thoroughly to ensure that you understand what is expected. When you sign the application for our program you are signing a contract.