As part of the economic stimulus package, the German Federal Government has decided on a temporary reduction of Value Added Tax (VAT), effective from July 1, 2020, to December 31, 2020. The standard tax rate will decrease from 19% to 16%, and the reduced rate from 7% to 5%.
Impact on Your Odoo System For businesses using Odoo, this change requires immediate adjustments to ensure compliant invoicing and correct financial reporting. This affects:
- Sales Taxes: New tax rates must be created and mapped.
- Point of Sale (PoS): Cash registers need to reflect the new rates immediately.
- Fiscal Positions: Automated tax mapping for B2B/B2C transactions needs recalibration.
We Are Here to Help Adapting to sudden legal changes can be stressful. As your Odoo partner based in Fellbach (Stuttgart), we are prepared to support you through this transition. We ensure that your ERP configuration is updated seamlessly so you can focus on your business without worrying about compliance issues.
German VAT Reduction 2020: Adjusting Your Odoo ERP