{"id":65455,"date":"2020-06-04T15:37:56","date_gmt":"2020-06-04T13:37:56","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/?p=65455"},"modified":"2020-07-27T10:04:18","modified_gmt":"2020-07-27T08:04:18","slug":"new-vat-rates-germany","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/new-vat-rates-germany\/","title":{"rendered":"Corona measures in Germany: <New VAT rates as of 1 July 2020"},"content":{"rendered":"\n<p>The German government has announced an economic stimulus package with lower VAT rates and further relief for companies and municipalities to reduce the economic impact of the COVID-19 pandemic. Especially the changes regarding VAT have positive effects for online sellers, but can certainly be considered in tax reports and calculations.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/06\/Mehrwertsteuer-Deutschland-1024x536.jpg\" alt=\"\" class=\"wp-image-65447\" srcset=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/06\/Mehrwertsteuer-Deutschland-1024x536.jpg 1024w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/06\/Mehrwertsteuer-Deutschland-300x157.jpg 300w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/06\/Mehrwertsteuer-Deutschland-768x402.jpg 768w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2020\/06\/Mehrwertsteuer-Deutschland.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>130 billion euros.<\/strong> After long negotiations, the German government agreed on this amount for the coming economic stimulus package. The aim is to provide relief and support in various areas in order to mitigate the economic impact of the Corona crisis and to stimulate the economy in general.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Measures of the Federal Government of Germany<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Child bonus: Families get 300\u20ac per child<\/li><li>Shortening of insolvency proceedings (max. 3 years)<\/li><li>Social security contributions will be covered at a maximum of 40 percent until 2021<\/li><li>Bridging aid for small and medium-sized enterprises (SMEs), especially for hotels, bars, restaurants, etc.<\/li><li>Doubling the purchase premiums for electric cars<\/li><li>More independence through own production of medications<\/li><li>Investments in hospitals<\/li><li>Premiums for professional trainers<\/li><li>Financial support for art and culture<\/li><li>Financial support for municipalities due to lack of trade tax revenue<\/li><li>Change of the value-added-tax (VAT) rates<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Change of VAT rates<\/h2>\n\n\n\n<p>In the course of the economic reform, as already mentioned, the VAT rates will be reduced. These changes are scheduled for the period from 1 July 2020 to 31 December 2020. In the process, the standard VAT rate will be reduced from 19% to 16% and the reduced VAT rate from 7% to 5%.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div style=\"overflow-x: auto;\"><table><tbody><tr><td>\n  &nbsp;\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">Before 1 July 2020<\/td><td class=\"has-text-align-center\" data-align=\"center\">1  July 2020 \u2013 31 Dec 2020<\/td><\/tr><tr><td>Standard VAT rate<\/td><td class=\"has-text-align-center\" data-align=\"center\">19 %<\/td><td class=\"has-text-align-center\" data-align=\"center\">16%<\/td><\/tr><tr><td>Reduced VAT rate<\/td><td class=\"has-text-align-center\" data-align=\"center\">7%<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What changes for hellotax clients?<\/h2>\n\n\n\n<p>These changes in VAT are naturally taken into account by us and our software and prepared in time.<\/p>\n\n\n<div class=\"cta-shortcode cta-shortcode-normal \"><div class=\"cta-image\"><figure><img decoding=\"async\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2019\/10\/Samer.jpg\" alt=\"\"><\/figure><\/div><div class=\"cta-content\"><h3 class=\"font600\">Book a free consultation<\/h3><p>Our VAT experts are happy to help you. Book a free consultation today!<\/p>\n<div class=\"button-container\"><a href=\"https:\/\/hellotax.com\/contact-us?button=blog\" class=\"button button-secondary uppercase\">Free consultation<\/a><\/div><\/div><\/div>\n\n\n\n<p>Accordingly, nothing will change for you as a customer of us, even all automatically generated reports are adjusted to these changes as soon as they come into effect. Should you still have questions, you are <a href=\"https:\/\/hellotax.com\/free-consultation\/\">always welcome to contact us<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The German government has announced an economic stimulus package with lower VAT rates and further relief for companies and municipalities to reduce the economic impact of the COVID-19 pandemic. Especially the changes regarding VAT have positive effects for online sellers, but can certainly be considered in tax reports and calculations. 130 billion euros. After long [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":65447,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5593],"tags":[],"class_list":{"0":"post-65455","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-vat-compliance","8":"entry"},"acf":[],"modified_by":"Niki Stanev","_links":{"self":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/65455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/comments?post=65455"}],"version-history":[{"count":0,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/65455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media\/65447"}],"wp:attachment":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media?parent=65455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/categories?post=65455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/tags?post=65455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}