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Germany cuts rail VAT

  • Sep 22, 2019 | Richard Asquith

Germany has announced a reduction in the VAT rate applied on train journeys from the standard rate 19% to the 7% reduced VAT rate.

The measure is part of a range of proposals to reduce the environmental impact of transport. The VAT subsidy for train travel will only apply to journeys longer than 50km. This is expected to boost individual journeys by 5 million per annum.

To fund the tax cut, there will be a corresponding rise in the VAT rate on domestic air flights.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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