The temporary VAT rate reductions due to Covid-19 will end on December 31th 2020. The Federal Ministry of Finance explains in the letter, dated November 4th 2020, the details of the return to normal tax rates.
In short, from January 1st 2021, the regular tax rate in Germany will increase again to 19%, and the reduced tax rate to 7%. A special regulation exists for restaurant sales, for which a reduced VAT rate of 7% is applicable until June 30th 2021.
Please make sure to change over to regular tax rates in your systems for invoices and cash registers in a timely manner.
Please find extract from the letter, in English, here.
Latest Posts in "Germany"
- Vending Machines in Germany: Fiscal and Receipt Requirements
- General Court New VAT Case – T-548/26 (Finanzamt Freising) – No details known yet
- VAT Implications of Electricity Balancing Models for German Properties
- BFH Allows VAT Deduction on Legal Costs from Failed Car Toll Claims
- German E-Invoice Validation Must Cover XML, Business Rules and the PDF/A-3 Container
