As part of the corona measures, agreement has been reached in Germany on various measures. One of these is a temporary reduction in VAT rates. The standard rate of 19% is reduced to 16%, the 7% rate is reduced to 5%. This regime will be in place on July 1, 2020 and ends on December 31, 2020.

Companies who are VAT registered in Germany (including non-German based companies) need to be aware that transactions taking place before July 1, 2020 will still fall under the current VAT rates.