As part of the German government's planned economic stimulus package, VAT rates in Germany are likely to be reduced in the near future. In the gFM-Business ERP software VAT rates can be saved and specified flexibly for each customer, article and document.
So that you can carry out the changeover of VAT rates with gFM-Business optimally and without major loss of time, we describe in detail in the following article where VAT rates are stored in gFM-Business and how they can be changed for the planned reduction in VAT.
Table of contents
Note for FileMaker Server users
If gFM-Business is installed on a FileMaker Server for access via the Network is installed, stop the share and open the databases locally with FileMaker Pro (or -Advanced). Then set the global VAT rate in the locally opened version. You can then open the locally opened Database and start again on the FileMaker Server. The settings for the item and customer-related VAT rates can also be made in the version shared with FileMaker Server on the network.
Global presetting of the VAT rate
gFM-Business allows a global presetting of the regular and reduced VAT rate. These two values can be set in the program settings under:
[Settings > Preferences > Invoice]
can be specified. The values entered here have the last priority in process editing when creating receipts. The posting accounts can be specified to the right of the fields for the tax rates; the third field contains the account for the input tax.
Specification of the value list for selection in dialogs
The Value list of the VAT rates for selection in dialogs can be adjusted under [Settings > Preferences > Value lists]. Enter all the VAT rates you want to use in your documents line by line.
Article-related VAT rates
In the Article management the VAT rate at which it is to be charged by default can be specified in each item. The VAT rate can be edited on the main page under [Item > Item master].
Change VAT rate in several articles at the same time
If you want to change the VAT rate in several items at the same time, first create a selection of all data records in which you want to make the change with the same value (e.g. all items with 19% VAT or all foodstuffs with a reduced tax rate).
- To do this, use the [Search] symbol to switch to the Search mode and enter your desired search terms and confirm the search with [Enter] or click on the [Search] button. You can check how many data records are in your selection under "Called" in the left-hand navigation column.
- Click in the [VAT rate] field and enter the desired new value.
- Select the [Data records > Replace field content] function in the menu bar.
- Confirm the dialog with the [Replace] button. The value you have entered is now automatically entered in all data records called up in your selection.
Update price calculation in price groups
If price groups or graduated prices are also used to calculate item prices, the prices in the price groups may have to be recalculated on the basis of the item VAT rate. To do this, it is sufficient to update the price that is to remain the same. This can also be done using the "Replace field content" function in all called up articles at the same time. To do this, carry out the following steps:
- Call up all articles that have price groups (search mode, then enter an asterisk (*) in a price group field and carry out the search).
- If the net price is to be recalculated, click in the "Gross price" field; if the gross price is to be recalculated, click in the "Net price" field.
- Select the [Data records > Replace field content] function in the menu bar.
- Select "Replace with calculated result" and click on [Specify] if the window does not open automatically.
- Select the relationship "Article master_Price groups" in the selection menu at the top right of the formula dialog.
- If the net price is to be recalculated, double-click the "Price_gross" field in the left-hand column; if the gross price is to be recalculated, double-click the "Price_net" field in the left-hand column. Depending on your selection, the middle data area should now show either "Item_master_price_groups::Price_gross" or "Item_master_price_groups::Price_net".
- Confirm the dialog and click on the [Replace] button in the "Replace field content" dialog.
This process then automatically recalculates all prices in the price groups in all articles called up on the basis of the VAT rate saved in the article.
Customer-related VAT rates
In order to be able to automatically bill foreign customers without VAT, for example, a default VAT rate can also be set in each customer data record. This default can be set directly on the main page of the CRM under [Customers > Overview > Master data].
Change VAT rate in several customers at the same time
If you want to change the VAT rate in several customers at the same time, first create a selection of all data records in which you want to make the change with the same value (e.g. all customers with 19% VAT or all foreign customers or all customers from other EU countries).
- To do this, switch to search mode using the [Search] symbol and enter your desired search terms and confirm the search with [Enter] or click on the [Search] button. You can check how many data records are in your selection under "Called" in the left-hand navigation column.
- Click in the [VAT rate] field and enter the desired new value.
- Select the [Data records > Replace field content] function in the menu bar.
- Confirm the dialog with the [Replace] button. The value you have entered is now automatically entered in all data records called up in your selection.
Priority in process handling
As part of process editing, VAT rates are entered with the following priority when voucher items are created:
- Customer-related VAT rate, if available, otherwise
- Article-related VAT rate, if available, otherwise
- VAT rate from the default settings
The VAT rate of a document item can be edited directly in the invoice at any time (with the exception of posting documents that have already been posted).
All changes to preset VAT rates have the following effects only to futureThe [Invoice] module does not affect any existing documents in the [Invoice] module.
Special features for existing documents
If vouchers have already been created in which 19% VAT has been entered, these vouchers are also continued with 19%. If they are to be continued with the new VAT rate, the VAT rate in the items can be adjusted accordingly. If an item discount has been entered, the net value of the item discount must be re-entered once. The total amount of the document is automatically recalculated immediately after entry.
Notes on the economic stimulus package
As part of the Corona economic stimulus package, the VAT rate will be reduced from 19% to 16% or the reduced rate from 7% to 5% from July 1, 2020 to December 31, 2020. The ERP software should be converted promptly, as incorrectly reported VAT amounts must still be paid to the tax office and cannot be claimed as input tax by the recipient. Incorrect invoices are therefore penalized twice, so to speak.
Which rates apply to which services? In principle, the date of delivery or service is decisive and not the invoice date. In the case of services that extend over a longer period of time, the completion date of the service is decisive. If a service is provided in several parts with partial invoices, the date of completion of the respective partial service is decisive. A distinction must therefore be made here between partial invoices, partial invoices, final invoices, subscription invoices, etc.
Restaurateurs should also note that the VAT rate for food (not drinks) served on the premises will be 5% instead of 19% from July 1, 2020 to December 31, 2020. From January 1, 2021 to June 30, 2021, a tax rate of 7% instead of 19% applies. From July 1, 2020 to December 31, 2020, the tax rate for the sale of beverages will be 16% instead of 19%.
The regulations relating to the VAT reduction as part of the economic stimulus package are therefore relatively confusing. If in doubt, we recommend that you consult your tax advisor.
