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German Reduction of VAT rates – Checklist

On 3rd June 2020 the German government published plans for a 130 billion euro economic stimulus package to pull the economy out of the crisis through COVID 19. As part of these measures, a reduction of VAT rates is planned for a limited period from 1 July 2020 to 31 December 2020. The standard tax rate is to be reduced from 19 percent to 16 percent and the reduced VAT rate from 7 percent to 5 percent. The corresponding implementation in a law is expected for calendar week 25, whereby we have based this checklist on the draft law currently available.

Source PWC