Key Facts
- Continuing obligations require adjustments to invoices, time periods and corrections, whereby the time of performance is decisive.
- The tax rate must be in accordance with § 14 para. 4 No. 8 must be noted in the invoice, as well as the specific tax amount.
- The correct tax rates must be stated on websites, flyers and advertising material from July 1, 2020 in order to avoid warnings.
- Software products for auctions must be checked for correct information texts and tax rates in order to avoid misrepresentation.
- General terms and conditions, pre-lists and other material should be checked for tax rates in order to avoid pitfalls.
- For online stores, the date of service provision is decisive, not the order date.
- The lower tax rate must not be displayed too early so as not to be misleading.
As of 01.07.2020, the sales tax will be reduced. But, what do I need to pay attention to when I bill? While the baker around the corner may just need to change a setting in his POS system and pay a little attention in his bookkeeping, there are numerous more complicated cases where you need to pay attention
- The most important of these are continuing obligations and ongoing services. Here, invoices may need to be adjusted, time periods changed, or even invoices corrected. The decisive factor with regard to the correct VAT rate is the time of performance.
- The tax rate must be in accordance with § 14 para. 4 No. 8 must be included in the invoice, as well as the specific tax amount. If one has in the invoices as templates with rates and notes, they must be adjusted.
- The correct tax rates must be printed on websites, flyers, promotional materials, printouts and more starting July 1, 2020. Errors in the small print etc. can also lead to warnings here.
- Software products that automatically post and/or update auctions on marketplaces, etc. must be checked to ensure that the notice texts and tax rates are correct. Of course, it must also be checked here that the final prices, net prices, etc. are correct, if possibly already created templates and the like are used. Misrepresentation or miscalculation may result in warnings. The overstatement of sales tax in turn leads to the fact that the higher sales tax rate is owed, although this may not have been claimed from the customer.
- T&Cs, price lists and all other material should be checked for correct tax rates and references. Here, stumbling hazards can quickly loom.
- In the case of online stores or other services, it is important to consider when the service is provided. It is not the order date that applies, but the date of performance. In online trading, for example, this can fall apart by ordering in June and shipping in July.
- The lower tax rate must not be displayed too early, even though it does not yet apply. This could be misleading and could possibly result in a warning.
- Ancillary services must be observed, correctly priced and labeled. This includes things like transportation, telecommunications, installation, delivery, shipping and the like. If this is listed individually, the correct tax rates, amounts and everything else must also be included here.
- If prices are adjusted, care must be taken to adjust things like standing orders, direct debit authorizations and other automated processes.
And once you are in the process of checking everything, you should immediately remember that the nonsense must be reversed on 31.12.2020.
