New year – old VAT rate

For companies, the short-term decision to reduce VAT represents an expense that is more or less complex depending on the company.

New year – old VAT rate

Since 01.01. The old VAT rates of 19 % and 7 % have applied again since January 1. the old VAT rates of 19% and 7% apply again.

The short-term decision to cut VAT is a great thing from the consumer’s point of view. For companies, however, this conversion represents an effort that is more or less complex depending on the company.
With a period of just 6 months, the duration of this VAT reduction is also short. Doubly annoying if a lot of resources in your company have to be used for the changeover.

Practice vs. theory

First of all, such a reduction sounds relatively simple. In the accounting and billing software, simply change from 19 to 16 – done.
However, it is only quite that simple for individual sales. In the case of subscriptions, on the other hand, the point in time at which the service is deemed to have been rendered is decisive. This can also apply retroactively if the invoice has already been issued. Then these invoices may need to be cancelled and correctly re-created with two tax rates.

Our solution

nexnet is available to customers in an advisory capacity. You can rely on over 20 years of experience of the specialists in accounts receivable management. And you can also enjoy these benefits with nexnet’s service:

  • Easy conversion or creation of VAT rates of invoices
  • Corrections can be made at any time
  • The change of the tax rate is done automatically by the systems of nexnet
  • Identify and correct pre-July 1, 2020 invoices that need to be updated due to VAT reduction
  • The pitfalls of subscription models and subscriptions are taken into account

✔ Minimize effort, increase efficiency

Are you looking for a solid partner for your financial management that will reduce expenses beyond the VAT conversion? nexnet helps to stay up to date and always maintain an overview.
Here you will find all the information on how nexnet canoptimize your financial management.