Sales tax reduction from July 2020
June 12, 2020
On June 12, the German government decided to temporarily reduce the value-added tax. Specifically, the VAT of the regular rate will be only 16 percent instead of 19 percent from July 1 to December 31, 2020. The reduced rate, which applies to many foodstuffs and everyday goods, will drop from 7 to 5 percent.