Guides

2020 German VAT Tax Changes

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On July 1, 2020 the VAT rate in Germany was temporarily decreased from 19% to 16% (or the reduced tax rate from 7% to 5%) as a benefit to consumers as a part of a stimulus package. This lowered VAT rate will soon revert to 19% (or 7%) on January 1, 2021.

What does this mean for your space? Invoices will return to the normal tax rate of 19% in 2021. If you bill memberships or extras in advance, this can also be done now in November and December for items next year.

For invoices from 2020, e.g. Memberships from December 15, 2020 to January 14, 2021 must be included such items are split into 16% and 19%—and invoices in January that contain items from 2020 (e.g. previously purchased time passes) must reflect 16% on those purchases.

Cobot always issues all your invoices with the tax rate applicable to the time at which the service is carried out.

This means that for bills for a Cobot subscription from December and January we will split the tax proportionally and charge 16% for days in December and 19% for the days in January.

And when does this happen?

In contrast to July, this time we had enough notice to prepare. The conversion of the invoices has already been completed, i.e. all invoices will automatically include the correct tax rates. You can already use the 19% on the invoice previews for 2021.

The conversion of prices in Cobot (for plans, bookings, extras, etc.) will be made on Monday, 4.1.2021. This means that your members will see the 16% tax rate from 1.1. until 4.1. in the morning; however, they will be billed 19% for anything that occurs during this period.

What do you need to do?

Since the changeover takes place automatically, you don't need to do anything.

We do recommend that you send random sample invoices in December and contact our support in case of problems.

Additionally we recommend you inform your members and ask them to read about the upcoming change to stay one step ahead of any surprises.

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07/07/2020

On July 1st 2020, the VAT rate in Germany changes from 19% to 16% (and from 7% to 5% for the reduced rate). This is a temporary change as part of the Konjunkturpaket, and will be in effect until December 31st 2020.

What does this mean for you?

First, we will automatically apply these changes to your Cobot subscription fees.

Second, we will automatically apply these changes to your Cobot space. Anything within your space that operates using the 19% tax rate, such as Membership Plan fees, will be reduced to 16% and anything that has a 7% tax rate, such as a Service Charges, will be reduced to 5%.

But what about invoices issued in June that cover July or later?

We will automatically apply corrections to your existing invoices. This means:

  1. The original invoice will be written off.
  2. A corrected invoice will be issued.
  3. Both invoices will be sent to the member.
  4. Any overpaid amounts will be automatically credited towards the member's next invoice.

What happens with time passes or booking passes that were invoiced already, but are used later?

The invoice for these time passes or booking passes are also subject to a correction as described above.


  • All Membership plans, Plan Extras and Signup Charges (under Setup » Plans)
  • All Resources and future calendar bookings up to December 31st, 2020 (under Bookings)
  • All Event Ticket fees (under Manage » Events, if installed)
  • The Basic Tax rate (under Setup » Basic » Payments)
  • All Service Charges (under Setup » Service Charges)

All of these changes will take effect on July 1st 2020 and will end on December 31st 2020, at which time your tax rates will revert back to 19% and 7%.

If you have any questions, please send a message to support@cobot.me.





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