German retailers to pass VAT cut on to shoppers

Date: 08/06/2020 Comments: 0
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German retailers to pass VAT cut on to shoppers

Germany’s federal government has decided to lower VAT as part of a post-pandemic economic stimulus package. Leading retailers Aldi Nord and Süd, Lidl, Kaufland, Edeka and Rewe and other operators have all announced they intend to pass on the reductions to shoppers in the form of lower prices. The tax cut came as part of a package worth EUR130 billion agreed by the Bundestag and will see VAT temporarily fall from 19% to 16% from July to the end of the year. Lower rates of VAT will also be trimmed from 7% to 5%. Leading electronics retailer Ceconomy has also said it will pass on the savings, although it did not provide a timeline for when this would happen.

Source: Lebensmittel Zeitung

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