VAT Reduction – These Changes You Need to Make in projectfacts
From 1 July 2020, VAT will be reduced for six months. Find out what changes you need to make in projectfacts here
VAT Adjustment from 19% to 16% from 1 July 2020 – No Problem with projectfacts
On 03.06.2020, the grand coalition decided that VAT rates would be reduced for six months from 1 July. This means that all companies issuing invoices will need to adjust their systems twice. First on 1 July to the then applicable reduced rates, and from 01.01.2021 everything will need to be switched back to the usual rates.
With projectfacts this is easily possible. To make sure nothing goes wrong, here is a brief guide.
The 3 Steps for VAT Adjustment
Step 1:
First, you need to adjust the VAT in the items. This is pleasantly straightforward via the multiple selection in the items list.
Step 2: Adjust Price Lists (Optional)
If you have explicitly set VAT rates in certain price lists, these will also need to be adjusted here. In normal cases these fields should be empty, in which case the VAT rate from the item is used.
Step 3: Update Orders
Afterwards, the orders still need to be triggered so that they update their VAT rates from the items or price lists. To do this, go to the Finance area of the Configuration and select “Reset VAT” via the multiple selection in the “Price Lists” tab.
These three steps will need to be carried out again as soon as VAT is raised again on 01.01.2021.