Austria

The Austrian Government has temporarily cut the VAT rate to 5%, from 1st July 2020 on the following:

  • Food and drinks in restaurants
  • theatre
  • cinema tickets
  • works of art
  • books
  • newspapers
  • zoos and nature parks
  • accommodation or overnight stays
  • other commercial catering activities such as butchers, bakers or Buschenschanken
  • e-publications

This change was introduced to help the affected businesses cope with the fallout from the COVID-19 pandemic. The change of VAT rate is effective until the end of 2020.

Bulgaria

From 1 July 2020 – 31 December 2020, the 9% VAT rate will be temporarily introduced for certain supplies of goods and services.

The reduction of the VAT rate is a temporary measure for coping with the fallout of the COVID-19 pandemic and is intended to support all of the affected business sectors.

The reduced VAT rate will apply to the below:

  • Catering services and restaurants (excluding alcoholic beverages)
  • Books
  • Food suitable for babies and children, diapers and other similar hygiene items

Czech Republic

The Czech Republic government have adopted a tax package that will reduce the VAT rate for the below from 15% to 10% from 1st May 2020:

  • Admission to cultural and sporting events
  • Accommodation services
  • Saunas and fitness centres

Cyprus

The VAT rate for tourism accommodation and catering sector services has been reduced from 9% – 5% from 1 July 2020 – 10 January 2021.

Germany

On 12 June 2020, cuts to VAT rates as part of a COVID-19 stimulus package were approved.

From 1 July 2020 to 31 December 2020 a temporary reduction in the German VAT rates will be introduced.

The standard VAT rate will reduce from 19% to 16% (standard VAT rate) and from 7% to 5% (reduced VAT rate).

In addition, from 1 July 2020 until 30 June 2021, the VAT rate for catering food services and meals in restaurants will be reduced from the standard to the reduced rate.

International VAT Rate Round Up: June 2020

If you missed last month’s VAT rate announcements or VAT threshold changes, you can catch up now.

Read the full story here

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