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News & Knowledge

Significant VAT changes in Germany to reduce COVID-19 impact

17th June 2020
Thomas Eggierth - ADKL

Due to Covid-19 the German government introduced new tax relief measures including significant changes to VAT.

Due to Covid-19 the German government decided to reduce VAT rates for the period of 1st July 2020 to 31st December 2020.

Supplies and services performed in this period will be taxed at 16% instead of 19% (reduced rate: 5% instead of 7%).

Currently the amendment of the VAT code needs still to be codified. The German federal tax authorities already released a draft  memo with comments regarding the implementation.

It will be necessary to identify the date of performance in order to choose the correct VAT rate. Besides this, various other questions might arise for businesses in Germany due to the VAT reduction.

For questions and further information, please contact our member firm ADKL.

About ADKL Abels Decker Kuhfuß & Partner - Düsseldorf

ADKL is an multidisciplinary partnership of experienced and entrepreneurial frame of mind certified auditors, lawyers and tax consultants. We consult numerous national and international companies and entrepreneurs with complex economic, legal and tax issues.

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