VAT reduction should be an advantage for customers
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When purchasing food, customers should have lower costs due to the planned reduction in VAT. Grocery chains and discounters have announced that they will pass on the tax benefits to consumers. You can find out which supermarkets promise this here.
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Food cheaper? Edeka and Netto are there
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“In the current situation, it is more important than ever to relieve consumers and strengthen the consumer climate in Germany,” said Edeka on Friday. The Edeka subsidiary, the Netto Marken-Discount, also promised to pass on the tax benefits “in full” to customers. The same applies to the almost identical competitor Netto. From July onwards, he wants “to significantly lower the price of many products and thus allow all customers to participate directly in the reduction in VAT”.
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Rewe, Aldi and Lidl also pass on the VAT reduction
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Other industry representatives expressed similar comments. “We have a lot of work with it now. But we will face up to this task – and will pass it on to customers,” said a spokesman for the supermarket chain Rewe. Aldi Nord and Süd informed the “Lebensmittelzeitung” that the discounters would support “German consumers in coping with the economic effects of the Corona crisis”. The VAT reduction will be passed on “in the form of cheaper prices to customers”. Lidl and the subsidiary Kaufland are also planning this: “We will offer all products for daily needs with the reduced VAT rate of 16 instead of 19 percent and the reduced rate of 5 instead of 7 percent,” it said in a message.
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The question remains whether other industries are moving along
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However, trade experts have doubts as to whether other sectors are also taking the step. “It will be shown whether every entrepreneur passes the advantage on to consumers,” said tax consultant and sales tax expert at the Bakertilly consultant, Marion Fetzer. Price changes are more difficult to understand, especially in smaller shops or restaurants.
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