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Jun 16, 2020 at 05:33 AM

Effect of the reduction of VAT in Germany as of 01.07.

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Hey all,

as some of you might have heard of, we (in Germany) are facing a reduction of VAT from 19% to 16% as of 01.07.2020. This reduction is temporarily, until 31.12.2020. We received this "good news" just a few days ago. Still lot's of time ahead, let's get cracking...

Our CSM told us, that this can be managed via the time dependent tax codes. We are quite confident, that we are able to do so.

I would like to use this forum to create an exchange of information with other users and to discuss problems in the implementation of the "new" tax codes.

The first problem i came across is about the input tax on incoming invoices without purchase order.

I would like to create an example:

We are in August and receive an supplier invoice without purchase order. The date of service/ date of delivery is in June. When we follow the german tax law, the input tax has to be 19% (the date of service/date of delivery the relevant date to determine the tax rate, at least in Germany). In SAP, we are only allowed to post supplier invoices (without purchase order) into the current and the previous posting period. Here this would be August and July. How does the system decide if it is 19% or 16% input tax? What will happen? If the date of service/ date of delivery is determined with the posting date, i think its wrong.

Maybe some of you might have had an equal case or already a solution.

Feel free to ask your question regarding the main topic here.

Best regards

Helge