Drop in value added tax (VAT) – important questions and answers

A lower rate of value added tax (VAT) will apply from 1 July. The standard rate will drop from 19 to 16 percent, the reduced rate from 7 to 5 percent. The goal here is to boost consumption and provide new stimulus for the economy during the coronavirus pandemic. What is the reason for the VAT reduction? How long will it apply? And will everything have to be relabelled with its new price? The most important frequently asked questions.