Following Germany’s slashing of its VAT rates to create consumer ease amidst the Coronavirus pandemic, Amazon issued an advisory to European sellers reminding them to reduce their German VAT Rates.
The German VAT rate was temporarily reduced by 3% for the standard vat rate and by 2% for the reduced VAT rate. Read more on this story here.
We would like to remind you that the German Government decided to temporarily reduce the value added tax (VAT) from July 1, 2020 until December 31, 2020. The German tax rates will change from:
- 19% to 16% (regular VAT rate).
- 7% to 5% (reduced VAT rate).
It is the aim of the German Government that retailers pass on the reduction to customers through lower prices. VAT reduction will not be automatically applied for your prices on Amazon, since uploaded prices are gross prices (tax inclusive). To lower your prices, you can use various tools in Seller Central*:
- In your catalogue using Inventory Files for bulk uploads.
- If you are using an API, update prices through Feed Files or your integrator solution.
*Please note that for Books, the Fixed Books Price (FBP) still applies.
Vatglobal provides e-commerce sellers with international VAT registration and compliance. If you have any queries with your current international compliance tax requirements, please email us at firstname.lastname@example.org.