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.

Parallel to the new legal circumstances, adjustments have to be made in the Diamant financial accounting software as well. The possible adjustments to G/L accounts, tax keys, controls or interfaces have been compiled for you in our newsletter. If you have not received it yet, please feel free to contact us by phone or by mail.

At the moment, we do not have any information about a new advance VAT return form. All other information also relates to the current status published by the Federal Ministry of Finance.

Should there be any further relevant information, we will pass it on immediately.