Germany VAT Rate Reduction

This notice is intended for NetSuite accounts that have a Germany subsidiary and you have installed the International Tax Reports SuiteApp. Effective July 1, 2020 until December 31, 2020, the Value Added Tax (VAT) rates for Germany will be reduced from 19% to 16% (Standard Rate) and from 7% to 5% (Reduced Rate). Consequently, you will need to make changes to your tax codes in your NetSuite account to match the tax rate reduction. What is Changing? Recommended Action Starting from July 1, 2020 until December 31, 2020, the following tax codes with reduced rates are in effect in Germany: S2-DE (Standard Rate) - 16% R1-DE (Reduced Rate) - 5% The Germany VAT return form will be updated based on the new standard and reduced rate tax codes.