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Germany VAT rate returns to 19% from 16% 1 Jan 2021

Germany’s standard VAT rate has returned to 19% on 1 January 2021. Restaurant 7% rate continues until end of 2022

Germany temporarily cut its 19% standard VAT rate to 16% from 1 July until 31 December 2020. This was to help consumers and businesses struggling with the economic effects of the COVID-19 pandemic.

The standard VAT rise  implementation rules have now been published. B2B invoices were exempted for the first 30 days of the cut, so 19% deductions may still be applied by customers during July 2020. Sign-up for VAT Calc’s FREE global VAT and GST news e-mail updates.

German restaurant VAT 7% rate until 31 December 2022

The 7% reduced VAT rate was also cut to 5% for the same period. In addition, the VAT rate on restaurants and catering has been cut from the standard rate to the reduced rate until 31 December 2022 (5% for the rest of 2020; 7% for 2021). The temporary cut in VAT on restaurant services was planned to end on 30 June 2021.

Countries such as the UK, Lithuania and the Belgium are now in the process of withdrawing their tourism and hospitality VAT rate cuts introduced during COVID-19 crisis.

You can verify any global VAT and GST rates via VAT Calc’s global rate searchable database.

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