VATupdate

Standard VAT rate reduced from 19 to 16 percent and reduced tax rate will drop from 7 to 5 percent between July 1 and Dec 31, 2020

In order to boost the economy after the corona pandemic, Germany has put together an economic package worth billions. On 3 June 2020, the German parliament proposed to temporarily reduce the VAT rates from 1 July 2020 until 31 December 2020.

  • Standard rate is to be reduced from 19% to 16%.
  • Reduced rate is to be reduced from 7% to 5%

Sources:

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