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Germany- Temporary Reduction Of VAT Rates!

Flash news – temporary reduction of standard and reduced VAT rates to apply in Germany between 1 July – 31 December 2020 Yesterday, on the 3rd of June, the German government agreed to a temporary reduction of the standard and reduced VAT rates. If this decision is approved by the German parliament (and it is expected that it will be), the new standard VAT rate in Germany will decrease from the current 19% to 16% and the current reduced VAT rate of 7% will be reduced to 5%. The reduced rates are to apply only between 1 July – 31 December 2020 with a view to boosting the German economy after COVID-19 pandemic.