The Federal Government has published a stimulus package to help the economy recover from the COVID-19 crisis. Among other things, the government decided to reduce the regular value-added-tax (VAT) rate from 19% to 16% and the reduced VAT rate from 7% to 5%.

The new VAT rates apply to services provided and goods delivered in the period from July 1, to December 31, 2020.

The applicable VAT rate will be decided based on the date on which the service was provided or the goods dispatched. The invoice or payment date is irrelevant in this case. Here is a little more information on how to decide which VAT rate to use:

For services, such as consulting or graphic design, the date to consider is the date of completion of the service.

For example, if a graphic designer completes a design service on June 30, 2020 and gets paid in July 2020, a tax rate of 19% applies. If the graphic designer would complete the performed service on July 1, 2020, a tax rate of 16% would apply.

For delivery of goods, the date to consider is when the goods were dispatched. This is when the trader has handed over the goods to the delivery service or the supplier. The date on which the order was placed or the time of delivery is irrelevant in this case.

Sorted tax guides are provided without liability and do not replace a tax advisor.
To get an accurate answer for your specific case, please consult a tax advisor.
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