Germany: temporary reduction in VAT rates as of July 1st, 2020

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)