German Standard VAT Rate Returned to 19%

On January 1, 2021 the German standard VAT rate is back to 19% and the reduced rate is now 7%. VAT rates in Germany were temporarily reduced to 16% and 5% over the last 6 months of 2020 during COVID. VAT on hospitality is the only lower rate remaining at 7% (instead of 19%) until June 30, 2021.

The time of supply is the correct date to use when determining which VAT rate to apply (overriding earliest date of sales invoice, payment or delivery). In other words for goods, it means the date of transport to the customer (shipping date). Please contact us at vat@eurovat.com with all questions regarding your German and EU VAT returns.

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