Term used in the German VAT Act (UStG). The regular VAT rate for revenue subject to VAT is 19% in Germany. The reduced tax rate is applied to certain sales (Annex 2 of § 12 UStG) – in Germany, this reduced rate is currently 7%. This scheme offers relief for end consumers of certain goods and services, e.g., grocery purchases, admission tickets, books, as well as certain types of art.

Source: UStG, edited (only available in German)