Just returned from a trip there, I've got a pile of receipts from Germany with 19% VAT, 7% on groceries. It was 16% a year or two ago. I was there as it was being raised-- lots of talk, lots of drama advertising, lots of rushing to buy big-ticket stuff (including by me). Afterwards? As far as I know, nothing. I don't think there was even much of a drop because of the sales surge. Just a reduced projected national debt. Of course, this is in a country where most people can figure out not to spend more than they have. Your mileage may vary.