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Reduced VAT Rates Valid from 1 July
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Reduced VAT Rates Valid from 1 July

|   Branchennews ( Newsletter )

The short-term reduction of VAT is a great thing from the consumer’s point of view. For companies, however, the adjustment represents a significant burden. The extent of this burden will vary from company to company. With a limited period of only six months, the duration of the reduction is also rather short: from the start of 2021, the old VAT rates of 19% 7% will apply again. So, the adjustment is a double inconvenience, for which many of your company’s resources will have to be used.

The short-term reduction of VAT is a great thing from the consumer’s point of view. For companies, however, the adjustment represents a significant burden. The extent of this burden will vary from company to company. With a limited period of only six months, the duration of the reduction is also rather short: from the start of 2021, the old VAT rates of 19% 7% will apply again. So, the adjustment is a double inconvenience, for which many of your company’s resources will have to be used.

 

At first glance, a reduction of this kind might seem relatively simple: in the accounting and billing software, we just change 19 to 16. Done. But it’s only that simple with individual purchases. With continuing obligations (e.g. subscriptions), what matters is the point in time at which the service was performed. This can also apply retrospectively if the invoice has already been issued. In this case, these the invoices may have to be cancelled and re-issued correctly with two tax rates.

nexnet is always there to offer advice to its customers. You’ll be able to rely on over 20 years of its experience as specialist in credit management. Problems arising from the adjustment or errors in the issuing of invoices will be avoided and corrections can be made at any time. The change in the VAT rate takes place automatically through nexnet’s systems, and the snags arising from continuing obligations, subscriptions, or subscription models are taken into account. And invoices that were already issued before 1 July 2020 but have to be corrected due to the VAT reduction will be identified by nexnet’s systems and corrected

 

Are you looking for a reliable partner for your finance management, who will not only reduce costs for you from you from the VAT reduction? nexnet will ensure you always keep up with the latest developments and stay on top of things at all times. You’ll find all the information you need on the outsourcing of your finance management here: www.nexnet.de/bpo.

 

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