Reduction of sales tax in Germany - MKY GROUP

In order to counteract the economic consequences of the corona crisis, the German Federal Government has adopted an economic stimulus package worth billions. This includes the **Reduction in sales tax from July 1, 2020**. For the time being, until 31.12.2020, the sales tax rate will be reduced from 19% to 16% and from 7% to 5%.

What Swiss companies must now consider

If you are registered for sales tax in Germany, accounting/ERP systems must be adapted to the new tax rates. The invoice layouts must be updated accordingly so that from July 1, 2020 — i.e. in just under 3 weeks — transactions can be correctly recorded and invoiced at the then applicable tax rate.

We're here for you!

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If you are affected by the change and need further information, please contact us. Our tax experts will assist you with your concerns.

Disclaimer: The content of this blog post is for informational purposes only and does not constitute professional advice. Each individual case should be reviewed individually and we recommend that you seek professional advice for specific questions.