Germany: Reduction of turnover tax: Problems in the transition at Amazons Value Added Tax- calculation service

Statement from Amazon Deutschland Services GmbH (by e-mail exclusively to Taxdoo on 2 July 2020): Amazon has implemented the new German VAT rates (16% and 5%), which came into force on 1 July 2020, in the systems in accordance with the legal requirements. There are rare circumstances in which customers and sales partners using the invoicing Value Added Taxservice will see the German VAT rates applicable before 1 July 2020 on invoices for 1 July or shortly thereafter. This constellation can occur if the processing of an order begins before July 1 but is not completed until July 1 or shortly thereafter with the dispatch. If this happens, business customers should continue to be able to deduct the full Value Added Tax amount of VAT at the old VAT rate according to the invoice, as the transitional provisions of theBMF letter of 30 June 2020 under item 46 still allow full input tax deduction in July 2020 in these cases.

Source Credit – Taxado