Corona crisis: Federal government approves second billion-euro economic stimulus package

On 12. June 2020, the German government launched a second billion-euro economic stimulus package to get the economy back on track after the Corona crisis. Important (tax) aspects include The VAT rate is to be reduced from 19 % to 16 % from 1.7.2020 to 31.12.2020. The reduced tax rate (e.g. applies to many foodstuffs […]

Information on the temporary reduction of VAT rates

With the measures of the Second stimulus package, which takes decisive action to tackle the economic effects of the Covid-19 pandemic, the economy should quickly regain momentum. The focus here is on the temporary reduction of VAT rates. As these are to apply from 1st. July 2020 (the Federal Council is expected to approve them […]

130 billion economic stimulus package adopted to combat the corona-induced recession.

The following financial aids were adopted on 3 June 2020: From 1 July to 31 December 2020, the VAT rate will be reduced from 19% to 16% and the reduced rate from 7% to 5%. Within the framework of a “Social Guarantee 2021”, social security contributions are to be stabilised at a maximum of 40%. […]