Attention! Please take note of the following information:
orderbird does not offer any legal or tax advice. All information with legal or tax aspects is in no case to be regarded as legal or tax advice. It is still possible that the tax rates suggested here are not applicable to you and your company in particular.
Therefore please contact your tax advisor for a binding statement on which VAT rates to use. orderbird excludes any liability for the topicality, correctness and completeness of the information provided here with regard to tax procedures.
You have probably already heard about the new tax rates in Germany. But what is the reduced tax rate, what is the regular tax rate and how long is which VAT rate valid for? And what is the automated update that I can activate on MY orderbird?
1. Two tax relief measures
In total, the German government has decided on two tax relief measures in 2020: One for the VAT rates in Germany in general (valid until 31.12.2020) and one specifically for the hospitality business in Germany (valid until 30.06.2021).
1.1 VAT rates Germany-wide: The Package for the Economy and the Future ("Konjunktur- und Zukunftspaket")
The package for the economy and the future provides a general reduction in VAT rates for six months (01.07.2020 to 31.12.2020):
- The regular VAT rate will be reduced from 19% to 16% and
- the reduced VAT rate is reduced from 7% to 5%.
(Source: https://www.bundesregierung.de/breg-de/themen/coronavirus/konjunkturpaket-geschnuert-1757558, last access: 10.06.2020)
1.2 VAT rates for the hospitality business: Reduced VAT rate for in-house consumption of food
In addition, for one year from 01.07.2020 to 30.06.2021, the reduced tax rate applies to the in-house consumption of food. This means for the period…
- from 01.07.2020 to 31.12.2020 5% reduced VAT rate (due to the economic stimulus and future package) and
- from 01.01.2021 to 31.06.2021 7% reduced VAT rate.
(Source: https://www.bundesregierung.de/breg-de/aktuelles/corona-steuerhilfegesetz-1750228, Last accessed: 10.06.2020)
1.3. What does this mean for orderbird PRO?
In the following table you find which tax rates you can can use for which time period in your orderbird POS system. These tax rates apply for your articles in the three categories meals, beverages and miscellaneous:
|prior to 01.07.2020||
from 01.07.2020 on
|from 01.01.2021 on||from 01.07.2021 on|
|MEALS Inhouse VAT||19 %||5 %||7 %||19 %|
|MEALS Takeaway VAT||7 %||5 %||7 %||7 %|
|BEVERAGES & MISC
(valid for Inhouse as well as Takeaway VAT, depending on each item)
|19 %||16 %||19 %||19 %|
|7 %||5 %||7 %||7 %|
2. How does the automation offered on MY orderbird work?
On MY orderbird you can activate an automated processing: All articles in your menu card will be updated, for which 19% and 7% tax rates are stored.
All tax rates of your product groups and articles will be updated, regarding their current tax rate and their superfamily group:
|Current tax rate is exactly…||Automated change of the tax rate to...|
|MEALS Inhouse VAT||19,00||5,00|
|MEALS Takeaway VAT||7,00||5,00|
|BEVERAGES & MISC Inhouse VAT / Takeaway VAT||19,00||16,00|
|BEVERAGES & MISC Inhouse VAT /Takeaway VAT||7,00||5,00|
This means you can only have VAT rates of exactly 19.00 percent and 7.00 percent changed automatically. Tax rates deviating from this, e.g. expense items, are not changed! This applies to both product groups and articles of e.g. 0.00 or 19.1 percent.
Note: The stored prices for family groups and items will not be changed!
After the automation you have to check all tax rates for their correctness! This is your responsibility and you can be held legally accountable for this.