On 03.06.2020, the German government adopted a comprehensive economic stimulus package to combat the economic consequences of the corona pandemic. This also includes the adjustment of the value added tax. From 1 July to 31 December 2020, the VAT rate is to be reduced from 19 percent to 16 percent and for the reduced rate from 7 percent to 5 percent.
The adjustment of VAT means that companies have to adapt their systems. This mainly affects sales and procurement processes that are relevant to value-added tax and calculate, display and post corresponding values. The application of the old and the new tax rate always depends on the point in time at which the service or delivery is considered to have been carried out.
Do you need support with the adaptation of your system? We are happy to help you. Together we will implement the adaptation in your system.