The German government's Package for the Economy and the Future has included among other things a reduction of the regular VAT rate from 19 percent to 16 percent for a six months period (July 1, 2020 to December 31, 2020). This period has elapsed and the regular VAT rate of 19% is applicable again.

When will the tax reduction to 19% take effect for you?

The decisive factor for the applied VAT is the expiry date of the license or the invoice date for hardware.

1. License invoices issued before 01.01.2021 and expiring before 01.01.2021 remain at 16% VAT.
2. License & hardware invoices issued before 01.01.2021 and expriring after 31.12.2020 are adjusted retroactively at 19%.
3. Licence & hardware invoices newly issued in the period from 01.07.2020 - 31.12.2020 have been issued with 16 % VAT.
4. License invoices that have been issued in the period from 01.07.2020 - 31.12.2020 with 16% VAT but expire after 31.12.2020, are adjusted to 19% VAT as of 01.01.2021.

This is how a retroactive invoice adjustment looks like from us

For example, if you have booked one or more of our annual licenses (service license, device licenses, Cashbook or Online-TSE) and have already paid for them, but the license(s) expire(s) after 31.12.2021, you will receive two new invoices.

1. One invoice with a credit balance for the amount of all invoices with 16% VAT that fall within the tax reduction period (01.08.2020-31.12.2020).
2. One invoice with a request for payment of the amount of all invoices with 19% VAT adjustment that fall within the period of tax reduction (01.08.2020-31.12.2020), but expire after 31.12.2021.

The credit balance resulting from these two invoices through the 3% tax increase will be charged with your next invoice.

What this means in terms of a tax reclaim or tax compensation for 2020/2021 is best clarified directly with your tax consultant. 

Please note that you have to keep all invoices according to the legal deadlines and none of the older invoices will be replaced by the new ones! The billing portal on MY orderbird comes in handy in this context: You can have a look and download every invoice you have received from orderbird.

Four examples of the adjusted value added tax of 19 percent from 01.01.2021

For licenses, the expiration date is relevant and determines if you will receive an adjusted invoice from us with 19% VAT. 

You have a monthly license that starts on the 15th of the month

 In general, this means that monthly licenses…

• with expiry date no later than 31.07.2020 are taxed with 19%.
• with expiry date between 01.08.2020 - 31.12.2020 are taxed with 16%.
• with expiry date from 01.01.2021 are taxed with 19%.

You have an annual license from September 2019

 In general, this means that annual licences for the Cashbook, the Online-TSS, annual device licences and annual service flat rates…

• with expiry date no later than 31.07.2020 are taxed with 19%.
• with expiry date between 01.08.2020 - 31.12.2020 are taxed with 16%.
• with expiry date from 01.01.2021 are taxed with 19%.

You have a three-year license from August 2017

 In general, this means that a three-year licence…

• with expiry date no later than 31.07.2020 are taxed with 19%.
• with expiry date from 01.08.2020 - 31.12.2020 are taxed with 16%.
• with expiry date from 01.01.2021 are taxed with 19%.

You buy a new printer

If you buy hardware from us (e.g. printer paper, iPad, printer, card reader, etc.), the date of invoice determines the VAT rate: