International VAT Rate Round-up: July 2020
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.
