Living in Germany

Here's how Germany's Kinderbonus payments 'boosted economy' in pandemic

Germany's coronavirus cash payment to families was found to be a more efficient and cost-effective way of boosting spending than lowering VAT, a new study shows.

Cars

German VAT cut drives demand for new cars

Car registrations in Germany showed this year's smallest monthly drop in July as buyers took advantage of a temporary cut in value added tax, figures released Wednesday showed.

Pensions

Everything that changes in Germany in July 2020

From higher wages to lower taxes, there's a lot changing in Germany as of Wednesday - and not all of it coronavirus related.

Business 1

Update: What you should know about Germany's VAT cut

Here's a look at what the VAT reduction will mean for people in Germany.

Business

How much will you save on products with Germany's new VAT reduction?

From July 1st the VAT (value added tax) was reduced for six months, meaning many products will become cheaper. We looked at what that means for you.

Hotel

Coalition considers retracting tax break for hotels

The German government is considering retracting the much-criticised reduction in sales tax for hotel stays, which came into force on January 1. The measure is one of several aimed at shoring up Germany's ailing state finances.

Taxes

FDP under fire for large donation from hotel magnate

The Free Democratic Party (FDP) received more than €1 million from one single donor – a baron whose company will profit from the reduction in value added tax on hotel bills recently enacted by the new government.

Economy

Critics say Merkel's tax cuts for hotels could stimulate sex trade

Members of Chancellor Angela Merkel's conservative Christian Democrats are worried proposed cuts in hotel sales tax could boost prostitution by making hourly establishments cheaper, daily <i>Süddeutsche Zeitung</i> reported on Wednesday.

Taxes

Government approves €8.5-bln fiscal package

The German government on Monday adopted a package of fiscal measures worth €8.5 billion ($12.7 billion) including tax cuts and benefits aimed at underpinning economic growth.

Taxes

Merkel rules out raising sales tax

Chancellor Angela Merkel Saturday ruled out raising VAT, or sales tax, should her Christian Democrat party win next month's general election.

Elections

Conservatives mulling higher VAT after vote

Chancellor Angela Merkel’s conservatives are considering raising Germany’s value-added tax rate, daily <i>Bild</i> reported on Thursday.

Money

Germany leads opposition to EU sales tax cuts

EU finance ministers clashed Saturday on whether to shake up European sales tax rules to allow reduced rates for targeted services and products, with Germany a vocal opponent to any cuts.