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One effect of the German federal government's economic stimulus package is that the VAT rates from 1 July 2020 to 31 December 2020 will be reduced from 19% to 16% and from 7% to 5%. This necessitates system- and process-related adjustments. Legal matters are also of significance, such as the question of the date that tax arises, especially for partial and continuous services, and changes to the basis of assessment. Our experts explained how you can manage these challenges over the near term and potentially benefit from the reduction in VAT rates.
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