Covid19: Germany reduces VAT rates

On 03.06.2020, The Grand Coalition in Germany has decided new measures to support businesses in the current Covid19 crisis. One of these measures is a temporary reduction of the VAT rates from 19% to 16% (regular rate) and 7% to 5% (reduced rate). The reduction shall be valid from 01.07. until 31.12.2020. A further mesure is the postponement of the payment deadline for Import VAT to the 26th day of the following month.

 

More information can be found on the homepage of the Federal Ministry of Economic Affairs.