On 31.12.2020 the low tax phase of the VAT ended. For all transactions carried out from 01.01.2021, a change will take place and the former VAT rates of 19% or 7% will apply again.
However, the reduced rate of 7% will be applied to restaurant and catering services (excluding beverages) in the period from 01.01.
In order to revive the economy after the corona shock of the last few months, the German government adopted a comprehensive fiscal stimulus package on June 12, 2020. A central part of these measures is the temporary reduction of the statutory value-added tax within the framework of the standard tax rate from currently 19 % to 16 % and the reduced tax rate from 7 % to 5 %.