resources-post-top-bg International VAT Rate Round-up: July 2020

International VAT Rate Round-up: July 2020

VAT News Updates

15th July 2020: All of the VAT rate changes you need to be aware of from the past 4 weeks.


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.



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



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



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.

See more Taxback International Articles

An interview with Terry Clune, Founder and CEO of Taxback Group

14 July 2020: Terry shares valuable insights about how Taxback Group has adapted to the Covid-19 pandemic and his inspiring story of building a sustainable business from scratch.

Country-specific VAT updates: July 2020

15 July 2020: Bulgaria, Czech Republic, Greece, Hungary and United Kingdom announced changes to VAT rules.

Be ready for the September VAT deadline

8th July 2020: Reclaim VAT on cross-border expenses incurred in EU member states, as well as non-EU VAT from certain countries