Germany Considers Major VAT Reform: Higher Standard Rate, Lower Reduced Rate, 0% on Essentials

• Germany is debating a major tax reform to shift the burden from income to consumption.
• The standard VAT rate may increase from 19% to 21–22%.
• The lower VAT rate could be reduced from 7% to 4%.
• A 0% VAT rate on essential groceries is being considered to protect lower-income households.
• The reform aims to align Germany’s VAT with the EU average amid inflation and rising living costs.

Source: fiscal-requirements.com

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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