Value added tax reduction – you have to consider that from 01.07.2020!

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 %.

In principle, you as an entrepreneur can choose whether you want to pass the savings on to the customers or increase your earnings.

However, the innovation is a challenge for accounting and auditing in your company, if only because of the extremely short lead time for the conversion.

In the following we have compiled the most important aspects of the VAT reduction for you.

ACCONSIS – Value Added Tax Information

VAT reduction – you have to consider this from 01.07.2020!

This client information contains relevant information on

  • Which tax rate applies when?
  • How do you allocate the tax rates correctly in terms of time?
  • Which special cases must be considered?
  • Does the tax rate reduction have to be passed on to customers?
  • Checklist for implementing the tax rate change

Crisis situations require quick help & support

Further helpful information can be found at the ACCONSIS Corona Task Force Service.

‚ACCONSIS Corona Task Force‘ by e-mail

If you would like to be regularly informed about the latest news of the ‘ACCONSIS Corona Task Force’ by e-mail, please let us know and sign up for our special “Corona” newsletter:

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Rolf Hackspiel Umsatzsteuerexperte in München

Dipl. Fin.-W. (FH), Steuerberater
Rolf Hackspiel
Geschäftsführer der Acconsis GmbH Steuerberatungsgesellschaft

+49 89 54 71 43
or by e-mail

My recommendation

If you need support or have other questions about these topics, please do not hesitate to contact me. I have specialized in the subject of value added tax and will be happy to advise you.