Reduction of value added tax in Germany

From 1 July to 31 December, a new VAT rate of 16 percent instead of 19 percent will apply in Germany. Just in time for the introduction, we have improved our invoicing so that you can calculate the correct VAT from the very beginning.
 

Change over VAT rate

As of July 1, you will find a new drop-down menu in the invoicing section. There you can choose between 16 percent and 19 percent value added tax. In doing so, clockodo takes into account the performance period you have specified, or more precisely the last day of the period. For example, if you want to bill services where the last day falls in the period from July 1 to December 31, clockodo automatically selects the new VAT. But if you bill for services that you performed exclusively before the key date, the system proposes 19 percent. This means for you: no permanent change of the VAT rate in the system. After the tax reduction, the percentage stored in the settings automatically applies again.

Since the new value added tax does not affect all clockodo customers, this new option is only visible to users who have a billing address in Germany and have deposited a value added tax of 16 percent or 19 percent. In addition, it is necessary to connect clockodo to a partner app for invoicing.