The German government has presented a fiscal stimulus package which includes a temporary cut in VAT rates in Germany, from 19% to 16% for the standard rate and from 7% to 5% for the reduced rate.
The rates of 16% and 5% will apply from 1 July 2020 until 31 December 2020.
In addition, import VAT can be paid until the 26th day of the month following importation.
Sources:
- CDU.
- CDU. (2020). Corona-Folgen bekämpfen, Wohlstand sichern, Zukunftsfähigkeit stärken. (PDF in German)
