VAT reduction: The price is hot

shopping and money saving – if that is not an incentive. From this Wednesday to the German tax-saving are invited to Shop. The Bundestag and the Bundesrat have

VAT reduction: The price is hot

shopping and money saving – if that is not an incentive. From this Wednesday to the German tax-saving are invited to Shop. The Bundestag and the Bundesrat have decided this just before the summer break, the second Corona-tax assistance act. The Central Element is the reduction of VAT is: Six months is a couple of percentage points lower than otherwise.

Germany Is now at a bargain Paradise? By starts the economy now? Nice wouldn't it, sure it is. The tax relief is better than doing nothing. And it helps, unlike a pure car bonus, every industry, no is preferred. All the benefit, though, of course, the effect in absolute terms, at the gas-guzzling HP-Skidding, much more than simple oil.

The Federal government dispensed with the temporary reduction in VAT to 20 billion euros to stimulate the economy. Whether this is worth the effort, depends on the reactions. Sure, only one thing is: companies and their advisors, the law requires such short-entry into force on 1. July extremely much. Accounting and funds need to be reprogrammed. Invoices incorrectly reported tax rates result in substantial Correction of work. But when the companies participate, reduce their prices and so the demand to start, it is worth the effort.

The Federal government foregoes substantial revenue

Some evidence that the control part rubbed the Germans will work this time. First, companies have also responded already, some of them are faster and more generous than the legislature. Add to that: Even if not all of the rich, the tax cut further, it is not ineffective. If companies can survive the crisis in this way would also have won something.

Updated Date: 30 June 2020, 11:20

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