VATLive > Blog > Germany > Germany VAT payment holiday till Dec 2020 for coronavirus

Germany VAT payment holiday till Dec 2020 for coronavirus outbreak

  • Apr 23, 2020 | Richard Asquith

4 June - German VAT rate cut from 19% to 16% until 31 December 2020

23 April: Germany has reduced VAT catering food services from 19% to 7%. The classification from the standard rate to reduced rate will apply from 1 July until 1 July 2021. Take-away and delivered food is already liable to 7% VAT.

8 April: the 2019 annual VAT return deadline is postponed until 31 May 2020.

22 March: Germany has updated its VAT deferment offer during the COVID-19 crisis.

The Germany Ministry of Finance, Bundesfinanzministerium (BMF), has announced that businesses may apply for a delay on Value Added Tax payments until 31 December 2020.  Companies need only provide basic evidence of challenging trading circumstances to gain approval for a postponement. Follow Avalara’s live  global coronavirus Covid-19 VAT measures tracker.

A further delay beyond 2020 may also be requested, although the evidence hurdle is higher.

The BMF measure has been co-ordinated with the local states tax offices. These offices collect taxes on behalf of the federal government.

The deferment offer applies not just to VAT, but also personal and corporate income taxes.

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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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