Update on German VAT rates - June 2020

Due to the Covid-19 crisis, the German government announced a temporary VAT cut. From July 1, 2020, until December 31, 2020, the standard rate of VAT will be reduced from 19% to 16%, and the lower band cut from 7% to 5%. We have updated those rates in Spendesk. More details.

Spendesk allows you to manually fill out all your payments’ VAT rate.

Under the Payments tab, click on a payment and enter the right type of VAT and its related rate.

There are several types of VAT rate within your Spendesk interface:

  • Goods and services being sold domestically are liable to VAT. Within Spendesk, you can choose between different national VAT rates depending on the nature of goods and services you purchase.
  • Goods and services are being sold between different countries as part of the European Single Market are also liable to VAT. However, the transaction is subject to a Reverse Charge procedure which means that you may be able to manually enter the right VAT rate within Spendesk.
  • Goods and services that are exempt from VAT are not liable to VAT. Within Spendesk, you do not need to indicate any VAT rate (e.g. books, newspaper etc.)

👉🏻 There is now an "other" option to add a different VAT rate to your payment.

👉🏻 If you're unsure on the VAT rate that should be chosen, contact your Finance team.

You can also reach out to our support team in order to activate our new automated VAT extraction feature! This will all you to automatically pre-fill VAT rates on your invoices.

👉🏻 All the VAT rates that are automatically filled out on your payments are directly displayed on any exported account statement.

Did this answer your question?