VATLive > Blog > Germany > German VAT cut transition rules

German VAT cut transition rules

  • Jun 21, 2020 | Richard Asquith

The German Finance Ministry has issued guidance on the tranisiont for the temporary VAT rate cut from 19% to 16% from 1 July until the end of 2020. The reduced VAT rate is also to be cut from 7% to 5%. Restaurant, café and other catering services will enjoy a VAT rate cut from 7% to 5% between 1 July 2020 and 30 June 2021.

The rate change comes into force on 1 July 2020 for all taxable supplies, including intra-community supplies. There is a 1-month soft-landing in July for B2B invoices – see below.

 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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