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We issue all invoices according to your respective tax settings. If your business is based in Germany, invoices are now issued in accordance with the German government's COVID protection shield announced on 23.06.2020. 

These changes will be reflected as follows:

Applied tax rate on invoices

• All services delivered before < 01.07.2020 are billed on a separate invoice with 19% VAT
• All services delivered before >= 01.07.2020 and < 31.12.2020 are billed on a separate invoice with 16% VAT

Changes on post-paid invoices

• Example: Invoice to be paid in 30 days
• The reduced VAT rate of 16% will be applied.

Changes on pre-paid invoices

• Example: Invoice settled by existing deposits.
• The reduced VAT rate of 16% will be applied.
• Due to the different VAT rates we will settle invoices with deposits that have 16% and 19% VAT. This means that ...
  • in case the deposit invoice is created before 01.07.2020 with 19% you paid too much VAT, and GC will credit you the difference.
  • in case the deposit invoice is created on or after 01.07.2020 with 16% and the service is delivered before 31.12.2020 you paid the correct VAT amount
  • in case the deposit invoice is created on or after 01.07.2020 with 16% and the service is delivered after 31.12.2020 you paid not enough VAT, and owe us the difference. 

Additional notes on invoices

• "We compensated our delivered services with your balance from before 01.07.2020 with 19% VAT."
• "For all services delivered between 01.07. - 31.12.2020 the 16% reduced VAT (COVID reduced rate) has been applied."
• "We will credit you the 3% VAT difference in the amount of {amount and currency} at the end of the month." or "We kindly request that you credit us the 3% VAT difference in the amount of {amount and currency} until the end of the month."

Sources

• Temporary reduction of the general and reduced VAT rate as of 1 July 2020 (German article)
• Official letter from the Federal Ministry of Finance - 23.06.2020 (German article)