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Kaufland To Implement Reduced VAT Rates From 1 July

By Dayeeta Das
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Kaufland To Implement Reduced VAT Rates From 1 July

German retailer Kaufland has said that it will implement the reduction in VAT rates announced by the government on all products starting 1 July.

The retailer will re-label the prices of all products, indicating the old and new prices, to ensure transparency.

The process of re-labelling approximately 30,000 items in almost 670 German Kaufland branches will involve considerable costs and effort, Kaufland added.

It will also include updating the systems in its outlets as well as posters and other advertising materials.

'Affordable Prices'

Member of the management board for purchasing in Kaufland, Andreas Schopper, said, ”We support the federal government's objectives so that relief is received by all citizens and they benefit from their daily shopping. It has always been our aim to offer our customers affordable prices.”


The reduced VAT rates, planned for six months, are a part of a €130 million economic stimulus package announced by the German government.

The standard VAT rates for goods and services have been decreased from 19% from 16%, and the reduced VAT rates from 7% to 5%.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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