Latest News on the VAT Reduction at 5 POINT AG
The VAT reduction applies to all services whose end date falls between 01.07. & 31.12.2020. Find out more
Latest News on the VAT Reduction
Due to the short-notice change in VAT rates, there is currently general uncertainty about which VAT rate now applies when. This is no different for us.
Problems arise above all when there is uncertainty about the exact date of service delivery. In particular, the question: “When is this date for a software licence?” is one that we ourselves are grappling with.
For this reason, we are in regular contact with our tax advisor. Based on our current understanding, the following applies:
The date of service delivery is the date on which the service was fully rendered. For a licence, this means that the end date of the licence period is decisive for the tax rate when billing. The start date of the licence is not decisive for tax purposes. For example, if an annual licence has a start date between 01.07.2020 – 31.12.2020, the invoice must be issued with 19% VAT, as the end date does not fall within the relevant period.
Invoices created between 01.07.2019 and 31.12.2019 that include annual licence costs will receive the reduced rate. The same applies to all other billing periods ending between 01.07.2020 and 31.12.2020. Affected customers will be notified of the process.
We hope to receive an official statement from the Federal Ministry of Finance on this topic soon. In the meantime, you will find further links below:
⇒ https://sevdesk.de/blog/mehrwertsteuersenkung-2020/
⇒ https://haug-hoefer.de/mehrwertsteuersenkung-2020-corona-hilfen/
⇒ https://www.fgs-blog.de/mehrwertsteuer-umsetzungshilfe-zur-senkung-der-umsatzsteuersaetze/