GERMANY - COVID – BUSINESS ACTIVITY SUPPORT PACKAGE
Temporary reduction of VAT rate under discussion
The German Government has agreed on a business activity support programme, which consists of 57 measures and contains a volume of EUR 130 billion. The agreement stipulates, that the VAT rates shall be reduced from 19 % to 16% respectively from 7% to 5 %. The reduced VAT rates shall be applied between July 1, 2020 and December 31, 2020.