North America

German Ministry Analyzes Effects of VAT Reduction

Charles Riordan
June 16, 2017

According to a report from Reuters, the German Economic Ministry has recently been analyzing a possible reduction in the country’s 19% VAT rate, as part of a larger analysis of German trade surpluses. A ministry spokesperson did not deny the report, but stated that a VAT reduction would have a minimal effect on existing surpluses, and that increasing investment in Germany should be a higher priority. Germany has faced criticism from the United States government over its trade policy; any VAT reform, however, is unlikely to occur prior to the German national elections in September.  

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Author

Charles Riordan

Charles Riordan is a member of the Regulatory Analysis team at Sovos specializing in international taxation, with a focus on Value Added Tax systems in the European Union. Charles received his J.D. from Boston College Law School in 2013 and is an active member of the Massachusetts Bar.
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