“VAT paid”. With such promotions, wanted to boost, especially electric markets and furniture stores of the sale. Since the Federal government seems to have something copied. The idea is to have the wallet of the citizen is the Corona-crisis relaxed, should you pay for a half a year a few percentage points less value added tax. Whether or not the arriving but in the right and really the expected consumption boost is controversial.
VAT is reduced – exactly what is planned?
VAT you pay in Germany every Time you buy something. In the supermarket it is usually not on the price tag, but only on the receipt. Also in the case of larger purchases such as furniture or car dealership you see them on the bill.
The most Important thing:
- There are two different sets: the regular 19% and the reduced rate of 7 per cent for goods of basic needs, which should be particularly affordable.
- Both tax rates should be lowered to 16, or 5 percent.
- the new tax rates from 1 are to Apply. July to 31. December.
save the consumer money?
This is the goal – but it is still not entirely sure. Vice-Chancellor Olaf Scholz (SPD) has requested the trade, the tax reduction to consumers – have no way to force it to the shops but.
“is not entirely clear to Me whether companies are really reduce for short time your prices or tax reduction do not just take,” said the President of the Kiel Institute for the world economy, Gabriel Felbermayr, the “Handelsblatt”. Finally, all the price would have to be for a few months, signs re-printed.
How could run it, but it also shows the example of the United Kingdom. Here is the VAT in the financial crisis in 2009 has been reduced temporarily. According to a study, the traders further said 75 percent of it to the consumer.
How much of the Savings in VAT could be cut?
The more you shop, the more you can save in theory. A bottle of juice for now just 99 cents, with the tax reduction of two cents, in the case of a washing machine for 700 euros 15 euros.
the dealer Is equal to the selling price, nevertheless, he makes more profit he changes it, saves the consumer. Whether a supermarket will move away therefore, however, of the most relevant advertising prices like 1,99 euros, is open.
government lowers VAT: Here you will find out how much you can save Now to calculate!
Who can benefit in particular from this economic help?
In absolute Numbers, those save a lot of money buying expensive – so expected to be a high-earner. But at the same time, the VAT is for persons with low incomes often the only tax you pay in any significant amount.
A DIW study shows that the VAT charged, in relative terms, low-income households disproportionately – the reduction would be in them so disproportionately.
Can reduce to 1. July to be decided?
This is at least athletic. The Bundestag comes together once before, then a law could be decided in summary proceedings. The Federal Council would have to come to a special meeting, the tax reduction in time to wave through.
Could continue the VAT reduction in 2021?
CSU leader Markus Söder called this a “heart” of the decisions and considers that it is conceivable to extend the tax discount, when the rest have to wait for.
German Chancellor Angela Merkel (CDU) but prompt against an extension. The loss of income in case of a longer maturity, “we could not afford one,” she said in the evening in the ARD broadcast “take a stand”. A VAT makes more than 12 billion euros. In contrast to Söder, she could not think of an extension “now, because I am going to work on it, … that it comes back to the outbreak of the exponential type of Covid-19-cases.”
Brings the reduction in tax is really more demand?
This is controversial. Economists such as Thiess Büttner, University of Erlangen-Nuremberg, assume that while a lot is purchased, consumers prefer a lot of acquisitions but not only. For the first quarter of 2021 if the VAT is returned to a normal level – then expect a slump in consumption.
What is the cost of the tax reduction in the state?
The Ministry of Finance assumes that this year around 20 billion Euro less tax net.
but That would be a non-issue, if the economy get back on its feet and at the same time, the citizens had helped, says Minister of Finance Scholz. As rescue packages for large companies can cost far more.
the VAT reduction Is a hidden car premium purchase?
The suggested CSU leader Markus Söder in the night: in the light of the VAT reduction was bearable, that there will be no buying a car premium for gas. The car maker is insured immediately, they wanted to give the price advantage to their customers.
But the effect is at most of the cars far away from what had been hoped for by the manufacturer at a premium. Even a car for 30 000 euros would only be around 650 euros cheaper. If the consumer moves to buy, the don’t really need a new car, is uncertain. After looting in the USA: Apple secret iPhone-function PCP enabled To looting in the USA: Apple has activated a secret iPhone feature
More to the economic aid from the state and Corona-crisis
- 300 Euro per child from Federal government decides kids bonus for families – the parents need to know
- notice of termination, payment, Hygiene, fitness studios re-opened: What are the rights of customers
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