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.
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