VAT reduction costs companies 239 million euros

The Federal Statistical Office estimates the costs to the German economy associated with the temporary reduction in VAT at around EUR 239 million.

The Federal Statistical Office estimates the one-off costs incurred by companies in Germany as a result of the reduction in VAT and the re-increase after six months at just under EUR 239 million. This amount was stated by the Federal Government in its answer to a minor question from the Bundestag. According to the answer, the economic effect aimed for with the VAT reduction is also to be achieved through anticipatory effects on consumer demand, which can only be achieved if a clear time limit is set for the measure from the outset.