On 01/07/2020 the German government is temporarily reducing its regular VAT rate from 19% to 16% and its reduced VAT rate from 7% to 5%. The changing of VAT rates happens from time to time in different countries. This article explains how to configure Tradebox Finance Manager to ensure that orders, dated either side of a tax rate change date, are calculated with the correct tax rate.
THIS ARTICLE IS ONLY APPLICABLE FOR USERS WHO ARE REGISTERED FOR VAT IN GERMANY AND USE TRADEBOX FINANCE MANAGER
(Tradebox One user article; https://help.tradebox.co.uk/hc/en-gb/articles/360010581137)
- In Finance Manager ensure that the download setting is configured for a manual download by selecting Settings > Downloads from the Configuration menu.
- In the Sales Channel List, double click into every channel that downloads German sales and ensure the "Treat all sales as pending" option is ticked. This will ensure that all orders downloaded into Finance Manager will not be posted to Sage.
- Download all German orders with an order date prior to 01/07/2020.
- Ensure that there are no German orders with a date equal or greater than 01/07/2020. You can do this by selecting Orders from the Information menu and configuring the list to only show orders from a specified channel, with a status of pending dated from 01/07/2020:
After clicking OK, If the list does contain orders with a date equal or greater than 01/01/2020, select all and delete.
5. Repeat this process again, this time selecting all pending sales prior to 01/07/2020:
6. The resulting list will display all pending orders prior to 01/07/2020. To enable these to be posted to Sage choose Select All and Mark as OK. After the orders are marked as OK, they will disappear from the list.
7. Then choose the Post to Sage option from Operations menu. This will post all sales to Sage using the current (19%) tax code.
8. When all sales dated prior to 01/07/2020 have been processed into Sage the German tax code in Sage (used by Tradebox) needs to be amended to 16%. You can check which tax code Tradebox is linked to by selecting Settings > Countries from the Configuration menu.
9. Once the German Tax rate used by Tradebox in Sage 50 has been amended, the "Treat all sales as pending" option can be unticked in the sales channel. You may also wish to apply the "Ignore transactions prior to" setting in the German sales channel to prevent any orders prior to 01/07/2020 from being downloaded.