Economic stimulus package in Germany: reduction in value added tax

29.Mar 2021 | Industry

On 03.06.2020, the governing coalition agreed on a comprehensive economic stimulus and future package with a volume of 130 billion euros. The aim was to come out of the “extremely difficult situation” strong together, the Chancellor said. A good foundation has now been laid for this.

Among other things, a temporary reduction in VAT was decided: From July 1 until December 31, 2020, the VAT rate is to be reduced from 19 percent to 16 percent and from 7 percent to 5 percent for the reduced rate. According to the Chancellor, this would stimulate consumption and would be socially just, because the value added tax would be paid by everyone.

Our customers with the S-700 bluepos® are on the safe side here: A software update is now available with which the VAT changeover can be stored with a time control. The cash register will automatically adjust to the new tax rates after the daily closing date of 06/30/2020. Also integrated was a time control for the conversion of “meals” in the catering trade to the reduced tax rate from 01.07.2020 to 30.06.2021 . These updates are available to all customers under our software maintenance agreement.

See here the ARD report “Report from Berlin from 12.06.2020” on this topic.

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