adminAround two-thirds of the German associations of small and medium-sized enterprises (SME) negatively assessed the temporary reduction of value-added tax (VAT) in Germany and complained about additional work and costs, according to a member survey by umbrella association (ZGV) published yesterday.
Only 17 percent of member associations in the German SME sector expected a positive effect and economic stimulus from the VAT reduction from 19 to 16 percent, according to the survey.
“The VAT cut is well-intentioned but poorly implemented,” said Ludwig Veltmann, managing director of ZGV.
The “extremely short time available for implementation” had resulted in a high administrative burden for SMEs. Stationary retailers, for example, had to change their pricing and cash register systems. The majority of members also expected additional efforts and costs at the beginning of next year, when the temporary VAT reduction in Germany would run out, the survey found. — Xinhua.
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