Year 2021 VAT adjustments
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Hi all and a happy new Year!
Since the UK now left the EU market, we now don't collect UK VAT anymore. This means we have removed all taxes for upcoming invoices on our UK customers.
Also Germany increased its VAT back to 19% (it was temporarily lowered to 16% due to Covid-19) this means our German customers will see that reflected in their upcoming invoices.
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@nebulon said in Year 2021 VAT adjustments:
This means we have removed all taxes for upcoming invoices on our UK customers.
Heh, you've managed to find/ create the singular good thing about Brexit - my Cloudron invoices will be 20% less!
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@nebulon said in Year 2021 VAT adjustments:
since our company revenue is too small to be required to do so.
Out of interest, what is the VAT threshold in Germany? I would've assumed you were over it given you seem to be doing very nicely
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@jdaviescoates AFAIK, the threshold is 100k EUR which we are well over. I removed it for now from the original post to avoid any confusion. @nebulon does all taxes and stuff, so he knows better than me here.
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Since we are a GmbH registered in Germany and thus EU, we are not exempt from taxes within the EU.
The UK threshold I am referring to is https://www.gov.uk/vat-registration we don't currently sell as much to the UK market to get above that threshold. Since Brexit is still new this might change with more information coming in, but so far we will be treating UK customers tax wise same as other non-EU customers.
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@jdaviescoates Technically 16.666667% less, since VAT is added to the Net amount.
Quick reverse calculation from Gross to Net is /1.2
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Effectively the UK can now do what Jersey (where I live and has always been outside the EU) has done for years.
Europe I LOVE! The EU, well, we'll leave that for the remaining members to decide what works best for all — which I expect still needs some work given the variety of economies and industries.
Anyway, not to distract — great job being on top of the accounting!
