In order to boost the economy after the corona pandemic, Germany has put together an economic package worth billions. One of the key points of the package is a six-month reduction in VAT that starts July 1 and runs until December 31 2020.
- Standard rate is to be reduced from 19% to 16%.
- Reduced rate is to be reduced from 7% to 5%
The classification from the standard 19% rate to the reduced 7% VAT rate for catering food services was announced by government earlier in May. The reduced rate will start 1 July 2020 and run until 1 July 2021. Take-away and delivered food is already liable to 7% VAT
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