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No Reform of Value Added Tax in Current Legislative Period: Government Announcement

  • The current government has announced that there will be no reform of the sales tax in this legislative period
  • The temporary reduction of the sales tax rate for restaurant and catering services during the pandemic was a rushed process
  • The government reduced the general sales tax rate from 19% to 16% and the reduced rate from 7% to 5% for the second half of 2020
  • Despite calls for a permanent reduction in the sales tax rate for certain services, it was not successful
  • The government has rejected the idea of equalizing sales tax for different types of food products
  • The government stated that food products are generally subject to the reduced sales tax rate, while beverages are subject to the standard rate
  • A comprehensive reform of the sales tax system is a complex process and cannot be done quickly

Source: nwb-experten-blog.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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