Temporary VAT Cut Passed on to German Supermarket Shoppers

German VAT rates were temporarily reduced in July 2020 to alleviate the economic impact of COVID-19. A stimulus package reduced the standard rate from 19% to 16% and the reduced rate from 7% to 5% until January 2021 at an estimated cost of EUR 20 billion. A recent study indicates that the VAT cut has been passed on to supermarket customers.

Source: SOVOS

---

---