The reduction in VAT for six months is a central measure from the Corona package, with which the Federal Government wants to cushion the economic consequences of the pandemic. From an economic point of view, it is positive that this instrument works across all sectors. After all, the federal government expects an economic stimulus of 20 billion euros.
However, it should also be taken into account that customers may now postpone planned purchases until July in order to be able to buy the goods at a lower price. In addition, it must be observed to what extent the tax rate reductions also lead to lower prices and thus offer positive purchase incentives.
Three weeks for two extensive changes
The administrative burdens of a temporary change in accounting or bookkeeping and in company pricing are also open. Because the companies are threatened with considerable effort due to new price labeling in … Read More
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