Reduction of value added tax - no additional cost for German traders thanks to digital pricing

In order to revive the economy considering the Corona pandemic, the federal government of Germany has decided to reduce value added tax (VAT) for six months. From the 1st of July, the VAT will be reduced from 19 percent to 16 percent for half a year. For retailers, this changeover entails high costs and a high workload, as all products have to be newly signed for half a year - and thus all price tags in the stores have to be changed.

Namely, it is open to traders to allow the discount at the checkout. However, this means that the entire price information for the customer is no longer transparent. Instead, with a digital infrastructure and electronic labels, you can always display your price information on the digital labels precisely and up-to-date, so that customer satisfaction can ultimately be strengthened - and new ways of connectivity are also created.

Digitization of retail – demand for electronic pricing

If you have implemented digital price tags in your store, you can adjust your pricing information directly to the temporary reduction in VAT and update it with just one click. While non-digitized price tags (price labels made of paper) have to be created individually, printed out and affixed manually, electronic labels save your staff an enormous amount of time. This time saving strengthens you in the biggest advantage of physical trading - personal customer advice. In addition, there is no need for high paper costs and possible pricing errors due to the changing price information. With the digital real-time solution of electronic price tags, you can also strengthen your business in terms of sustainability.

If you do not yet use electronic pricing in your store, the temporary VAT changeover can be your impulse to recognize your demand for digital real-time solutions and to digitize your company structure: With the implementation of digital price tags in the stores, price information can be immediately adapted to the temporary reduction of VAT. The electronic labels are connected to the inventory management system via an interface and thus automatically accept changes such as VAT on each individual price tag. Replace your paper labels with electronic labels that can be used and written anywhere. This not only saves time and money, but also improves the shopping experience for your customers and brings you closer to the digital future in eCommerce.

e-shelf-labels is your partner if you want to bring an innovative retail experience to your permanent retail trade by digital networks. For each digital signage application, we offer you an appropriate software and hardware solution for your individual application area. Feel free to contact us - we are looking forward!

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