How strong we are with the new VAT rate in everyday life? A data analysis shows that In the case of products, from skin cream to Jeans, the Savings remains low. In the case of larger purchases, a Surprise is waiting.

More money at the end of the month the new lower VAT rate starting in July promises . From Golf to Billy shelf, we will show what we could save from July really. How strange are the rules for the VAT , show examples of donkey to the Christmas tree.

Starting in July, will pay all Federal citizens, only 16 percent VAT; the reduced tax rate even drops to five percent. Historically, Since the introduction it was with this tax only upwards. Until the end of the year, everything is now in the VAT, due to the Coronavirus otherwise – what are we going to remember every single purchase.

How much do we save now, but in fact, thanks to the economic stimulus package? In a first data analysis, we have researched the popular German consumer goods. And we show an example of calculated for each product, how much of this could be cheaper . Assuming is always the case that the manufacturer submit the VAT reduction on to your customers. This is not been in the past, however, not always the case – as is the case of feminine hygiene products. For this reduced tax rate applies to Recently – but at the checkout is no longer noteworthy.

Possible Savings through the reduction in VAT


CURRENT market price


1 Liter of milk, 3.5% in Fat

€ 0.79

0.02 Euro

the VW Golf, base model

19.995 Euro

504 Euro

Levis Jeans

€ 85

2,14 Euro

fuel tank fill Golf E10 (50 litres)

58,37 Euro

1,47 Euro

Billy bookcase Ikea

79 €

€ 1.99

the blood sugar measuring device Salter

$ 39.99

1,01 Euro

garden scissors Gardena

Euro 11.86

EUR 0.30

Nivea skin cream

1.16 euros

0,03 Euro

Canon camera 2000D


8,29 Euro

Marlboro Red 20 pieces

7 Euro

€ 0.18

The table above shows examples of products in the ten categories, in which the Germans in 2019, the most money invested (see methodology at the end). It is shown that the reduction in VAT at the end is something like a small car scrappage scheme might be, even if they may not be called that. In the case of a Gulf in the basic equipment of 500 euros of Savings in it. However, at the time of purchase of a Billy bookcase one looks back soberly on the reality : Here are two euros, remained only in the wallet. That’s enough, after all, after shopping for two Ikea hot dogs.

consequences of the reduction are sometimes amusing and not always logical

Our evaluation shows, however, at the same time, the added complexity and absurd features the German tax legislation: In the case of petrol, the VAT is not only on the fuel itself, but also on the energy tax. And on the subject of cigarettes is shown, that in the end all smokers pretty empty could go out. At a box price of the cigarettes seven Euro because of the special calculation method in the case of tobacco 18 cents Savings there were would just.

On the individual product in relation to three percentage points Savings through the lowered VAT so not just a lush. That was about the recently reduced long-distance transport Tickets* from 19 to seven percent VAT is quite different. Therefore, the views of the private consumption goods, spending a year results in a better image: At an average 20.420 Euro are at least per month 43 Euro Savings . This is just for the lower incomes, a significant amount of money. In reality, spending very different tax rates, such as in the case of insurance, however, apply for a different consumer. How much can save an average household at the end of the Corona-stimulus package, or even saves, can be seriously difficult to identify. What are the points of the catalogue of measures includes specifically, you can find here*.

How to get the VAT over the years more and more h3>

rose </That for the first time, the VAT is lowered and not increased, in any case, a far-reaching step . The following graph shows the evolution of the VAT since its introduction in 1968. The illustrated set of rules most of the consumer includes products such as cars, bicycles, lamps, or furniture. The reduced rate applies to food and Newspapers.

Curious examples of the value added tax: the Dead donkey and cut Christmas trees

Rather bizarre flowers on the first glance, the dry topic of VAT in the practice. What consumer goods are covered by the rule set and what the reduced tax rate, is not always logical. Only seven per cent VAT on riding horses, for ass, however, 19 percent – no matter whether alive or slaughtered. For the cross between a horse and a donkey, in turn, are required to pay only seven per cent, as the Süddeutsche Zeitung reported.

Also in the case of fruit juices there is no uniformity. The tax rate depends on the preparation. Basically, you have to pay for beverages such as fruit 19 percent juices, value-added tax. In the case of Smoothies or other pureed fruit, only seven per cent VAT on products, however. Indeed, it is in the case of Christmas trees: Artificial trees can be evidenced, for example, according to the world generally, with 19 per cent, of the trees from a forest but with seven percent. For a tree of a special culture, a special tax rate of 10.7 percent. Without VAT, there are still trees from abroad.

+ donkey, be vigilant: How curious it is in Germany, VAT is already the subject of farm animals. ©Icon image picture alliance/dpa / Stefan Sauer

How we calculated the possible Savings due to the reduction in VAT

How the Numbers come about : As a starting point we have used for 2019, the preliminary private consumption expenditure in Germany. As a result, we have determined the respective sub-categories and filtered according to the pure consumer products, insurance and services, we so aware of the outside world. For the Top ten categories we have identified on the Basis of statistics from the Federal motor transport authority, Amazon, industry associations, the Federal statistical office and from other sources, representative examples. The selection was not made, but ultimately, according to scientific criteria, but rather to draw a broad and insightful picture of the most popular consumer goods in Germany.

How we calculated the prices have : For each product, we determined in consequence of a market price in price search engines and other sources with a broad data base. The gasoline price we use the average price for may 2020 . Then we have the equivalent of the current market price on the new VAT rate – which is about the tobacco or petroleum tax is a complex calculation. Despite these limitations, this approach can, in our view, a first useful image of the on Wednesday evening announced the VAT reduction in the times of the Coronavirus and its consequences draw.

By Philipp David Pries and Selin Hubert

* is part of the nationwide Ippen-Digital editors network.

section list image:©icon image picture-alliance/ obs / Aral_AG