During the Corona crisis, the German government decided on a temporary reduction in value added tax from July 1 to December 31, 2020. As a result, from 1 July 2020, instead of 19 percent, only a VAT rate of 16 percent will be applied and the reduced rate will be lowered from 7 percent to 5 percent. Subject to the pending legislative approval, there will be a short-term need for action by all companies, so that the financial accounting and merchandise management systems draw the correct VAT in due time.

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