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Germany: Reduction of the value added tax – What has to be done?

Reduction of the value added tax for the gastronomy industry

7% instead of 19% value added tax. The tax relief for food that is served in-house was an important demand of the industrial association DEHOGA. The aim is to help gastronomy industry in Germany, which is suffering heavily from the economic effects of the Covid-19 pandemic. From 01 July 2020 the decision of the grand coalition will come into force and will be valid for one year. However, drinks are excluded from the tax reduction. Unfortunately, this means that for the time being the politicians are falling far behind the demands of the industry, which wants to push through a rescue fund and a permanent reduction in VAT.

However, a temporary adjustment of the tax rate also means that many important points need to be considered. Do tax schemes need to be adjusted and what is the effect of the adjustment on the main groups? How do I update the products of the connected POS systems in Delegate? Is it possible to adjust tax rates manually if revenues have already been recorded for the period after 01.07.2020?

Handbuch-Steuersenkung

Re-opening schedules have already been announced, which will allow gastronomy operations to operate again under strict conditions and therefore you have to be prepared. We want support our customers in the difficult times and have created a simple guideline. This guideline explains in simple steps what has to be done and how the VAT rate has to be stored correctly in the Delegate system.

For all our customers the guideline is already available since last week on our helpdesk portal as a free download. All important questions have been covered in the guideline, but if you have any further questions, please don’t hesitate contact your responsible Service Manager at any time, who will be happy to assist you with the adjustment.

What are the benefits of the tax reduction?

What does the reduction of the value added tax mean in general for the consumer, the retail sector and the state? Interested parties can play through various scenarios at “Blitzrechner.de” and check if the tax reduction also brings financial benefits for all in reality.