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As part of the German government's economic stimulus package, on July 01 to December 31, 2020, the value-added tax (VAT) in Germany will be reduced. During this period, a normal sales tax rate of 16% and a reduced VAT rate of 5%.
- Adjust the tax rates in the basic settings or in the projects or in the app Tax rates, create a tax rate for period from 01.07.2020 until 31.12.2020
- After the accounting export for June 2020, change the accounting accounts in the Convert global company data or per project
- If necessary, manually convert tax rates in individual documents
- Adjust taxation in your online stores
- If desired, adjust article prices: Per master data import or mass processing
Xentral allows you a simple system-wide conversion of the sales tax rates and optimal preparation for the upcoming challenges. Here we show you how. Under Administration → Settings → Basic Settings → Tax Currency you can change the sales tax on the effective date, i.e. July 01, 2020:
All documents created after the tax rate has been changed in the basic settings (see above) will use the new tax rate (applies to quotations, orders, invoices, credit notes, purchase orders and payables). After you can check newly created documents of this type to make sure that the settings are correct.
When continuing documents, the tax rate is taken from the previous document. but it can be changed manually at any time.
If, for example, an "old" order from the time before the changeover is continued after 01.07.2020 to an invoice, the tax rate from the basic settings will not be used, but the one from the order.
We use projects with their own tax rates. Where can I change them? If you use your own tax rates within a project, the change is just as easy there. Under Master data → Project → Settings → Tax / Currency you will find the same fields:
Own tax rates with validity period If you prefer to use a new tax rate changeover directly on the key date, you can create a new tax rate with a validity period from 01.07.2020 to 31.12.2020, you can do this in the Tax rates app.
When creating the tax rates, it is important that you use the tax rates 5% and 16% with the types "reduced" and "normal" and that you activate the "Set as default tax rate" option. Only then the tax rates will be overwritten in the company data from the first day of validity.
As soon as new documents are created, they will use the tax rate created here.
Tax rates with the type "normal" can be selected manually in documents per selected item.
On 31.12.2020 the validity then ends automatically, if you have set the date, the app Tax rates is already available.
As soon as the accounting export for June is done, the accounting accounts in the global company data can also be changed. In the marked fields, you can use the new account numbers. The next time the accounting is exported the new accounts will be used.
Chart of accounts per project Likewise, the chart of accounts can also be set per project (if you are already using it):
Assign liabilities to an account Liabilities are directly assigned to an account. Here the new control key can be entered directly for each liability.
NEW - Correctly export vouchers with mixed tax rates within a period. In the months following the sales tax reduction, it may happen that within a with a tax rate of 5% or 16% and others with 7% or 19% within one month. This occurs, for example, when the time of performance for some of these orders was still in June, but for others, it was already in July - i.e. after the VAT reduction.
With the latest DATEV update, the revenue accounts (e.g. 4400), which were previously applied to 7% and 19% invoices will be used for 5% and 16% invoices. Therefore, for 19% invoices exported between July and December 2020, an alternate revenue account is required.
To ensure that all invoices and credit notes receive the correct revenue account during export, this option can be activated: "Alternative revenue accounts for VAT reduction 2020".
The revenue accounts can then be entered in the fields, which are valid for the period 01.07.2020 to 31.12.2020 for 7% and 19% documents (7% domestic, 19% domestic, 7% EU delivery private, 19% EU delivery private).
For invoices that have already been posted for 2021, it is currently recommended to do a manual check, since the DATEV revenue accounts will probably be reset to the old status.
For documents with intra-community EU deliveries, the posting to the correct accounts should be checked manually, since these are still taken from the company data (basic settings).
The sales tax in a single document can be changed per line item. So it is possible to tax some items with 19% and others with 16% within one document. To do this, when editing a position, you can select the setting "Use individual tax rate" and there you can assign a different tax rate if required. You can choose from all the tax rates that you have previously selected under Administration → AppStore → Tax rates.
How do I deal with documents that were created before the reduction of the sales tax? Please pay attention to when your orders and invoices were written, respectively when the delivery or service took place, and check your receipts if necessary. For detailed questions about the tax regulations in individual cases, please contact your tax offices and tax advisors can help you.
Order Blocker App With the Order Blocker app you can make sure that no orders, which were created before 01.07.2020, are sent by mistake in the auto dispatch without the correct taxation being checked beforehand.
You do not need to do anything else, so to activate the option and set from which date orders should be blocked from autoshipment.
The option "Release for auto shipping" is then automatically removed from all orders when they are released. Only when the order has been manually released for auto shipping, the process starter will push it to the shipping center.
What happens when documents are continued? When continuing an offer to the order, the order takes over the new tax rate from the Company data or the app Tax rates. When continuing an order to the invoice the invoice takes over the tax rate from the order. When continuing an invoice to the credit memo, the credit memo adopts the tax rate from the invoice.
Delivery bill to invoice: Delivery bills contain no sales tax data.
If an order is continued to the delivery bill, the delivery bill then becomes an invoice, the invoice, therefore, deducts the tax rate from the order. If a delivery note is created manually without a preceding order and then forwarded to the invoice, the invoice takes the tax rate from the company data or the project.
Purchase Orders and Payables: If a purchase order is carried forward the liability always takes the tax rate from the company data or the project.
Change behavior when continuing With the latest update versions 20.1 and 20.2, you can also define under Administration → Settings → Basic settings → Tax / Currency Basic settings → Tax / Currency, whether documents should use the tax rate from the previous document or the current tax rate stored in the company data.
This is especially useful if you have created quotations or orders with the old tax rates, but you want to continue them to an invoice that uses the new tax rates.
Please note: Since delivery bills do not contain any sales tax data, the Invoice always takes the tax rate from the previous order, if available, when continuing a delivery bill to an invoice.
Most of the store interfaces from xentral take over the tax rates from the store. Please make sure that the taxation in your online shops is also correctly converted on the due date.
Note: Plugins installed in the store can possibly change the behavior of how the tax is passed.
If you use the automatic store import via process starter and want to be sure that during the key date change on 01.07.2020, no orders are imported from your online store before the taxation has been adjusted there, you can temporarily deactivate the process launcher and thus stop.
As soon as your store is set up correctly, you activate the process starter again and the import will start. For a first test, you can also pick up a single manually. If these are correct, you can reactivate the process starter again, so that the orders of the last twelve hours are fetched.
The reduction in sales tax is causing many companies to adjust their item prices. Under Administration → Import / Export Headquarters you can import the net sales prices of all your items quickly. To do this, you need at least the article number and the new sales price.
If you only want to adjust the prices of a small number of articles (approx. up to 100), this can also be done with the mass processing in the article master.