Team Airpaq has decided to donate the profits of the VAT reduction to disadvantaged children. You can read about our motives and what exactly the money is donated for in this article.
As most of you have probably already noticed, the VAT in Germany will be reduced by three percent from July 1 to December 31 2020 to revive the economy. While we are very pleased about this initiative of the German government, as a small start-up we are now still facing some problems.
On the one hand, we are a company that sells its products not only in Germany, but also in other EU countries such as Austria, Switzerland, France and Spain, to which the reduction in VAT does not apply. To offer our products for a lower price exclusively in Germany would not be fair to our retailers and customers in other countries.
On the other hand, we do not only sell our products via our own shop and our own website, but also work with retailers who have small shops scattered all over Germany. These small retailers have suffered greatly from the temporary closure due to the corona virus and in some cases are still struggling with major problems. A reduction in VAT for such small businesses initially means to make a costly effort, because this changeover requires a change in all price tags, updating of online shops etc. and it is questionable whether such a changeover is profitable for the limited VAT reduction period of six months.
Ultimately, however, we simply think that these three percent of the price can simply be invested a lot better elsewhere. This is why we have decided not to change our prices in the next six months, but to donate the profits of the three percent VAT reduction. For the period of the six-month VAT reduction, we have chosen 3 non-profit organizations to support people who are now more than ever in need of help.
For the first two months of the VAT reduction, we would like to support the Deutsches Kinderhilfswerk, which cares for underprivileged children living in poverty in Germany. The NGO not only provides individual help for children in need, but also operates facilities such as children's homes, where disadvantaged children get a warm and healthy meal and can play together. The Corona pandemic, however, currently causes a particularly difficult situation for children living in poverty: in many places, educational opportunities have been moved to the digital area, but many children are already severely disadvantaged here due to a lack of a laptop or even basic internet access, so their right to education is restricted. With the help of donations, the Deutsches Kinderhilfswerk helps to eliminate these inequalities by purchasing computers and providing internet access to continue to guarantee the chance of education for as many children as possible. We find this approach extremely important and would therefore like to help supporting this non-profit organization. For this reason, we are donating the difference of the 3% VAT reduction to the project "Education in times of the Corona Pandemic" of the Deutsches Kinderhilfswerk from July 1.