What's the temporary VAT cut?
To face the ongoing challenges of the Covid-19 pandemic, Germany decided to launch a recovery plan on June 12th, 2020 to boost consumption.
As a first fiscal program was adopted earlier in the year (€156 billion), a second was recently voted (€130 billion). Among its measures (see the list here) is a temporary tax reduction for the last 6 months of 2020 (July 1st - December 31st 2020).
Smaller tax rates will during this time be reduced from 7% to 5%. They include goods like food, cultural goods, flowers, books, medical supplies transport.
The regular tax rate will drop from 19% to 16%. All goods which don't have a reduced or 0% rate are included.
🤓 More details here.
How will Spendesk adapt?
Spendesk payment preparation
Users and Controllers will be able to select these new VAT rates amongst others.
You can still rely on his VAT auto-calculations!
Custom exports (Datev and other custom exports) will be updated with the new rates. Nothing to change on your side!