Reduction of value added tax as part of the Corona recovery package
Configuration of the taxes in Odoo
11 June, 2020 by
Reduction of value added tax as part of the Corona recovery package
manaTec GmbH, Tom Tietze
 

In response to the economic consequences of the COVID-19 pandemic, the German government has adopted a comprehensive economic stimulus and future package. In addition to aid for local authorities, subsidies for families and investment in future technologies, it was decided to reduce sales tax from 19% to 16% and the reduced rate from 7% to 5% in the period from July 1, 2020 to December 31, 2020. This is intended to boost the economy and increase purchasing power in times of crisis.

The tax reduction is intended to increase purchasing power again in times of the COVID-19 crisis.
The tax reduction is intended to increase purchasing power again in times of the COVID-19 crisis.

What exactly does the tax reduction mean for the configuration in our ERP system Odoo? If we map our purchasing and sales processes in Odoo, we have to create and activate the new tax rates for the relevant period within the defined standard chart of accounts "SKR03" or "SKR04". We briefly describe how this works in today's blog.

In the first step we define the deviating tax, revenue and expense accounts that work with the new tax rates. Then we create the required new tax rates in Odoo (16% sales tax, 5% reduced sales tax, 16% input tax, 5% reduced input tax). After that, we create a new tax allocation that contains the necessary change of taxes and accounts for this period.

The implementation via a tax assignment enables the automated preselection of the new taxes and accounts in newly created orders and invoices. This has the advantage that the preconfigured taxes and accounts, e.g. in the product master data, do not have to be changed for the short period of time, but the correct taxes and accounts are still preselected directly in orders and invoices. The automatic recognition of the tax assignment is initially deactivated, so that it is not yet applied immediately.

The new tax rates and the tax assignment are directly configured in Odoo.
The new tax rates and the tax assignment are directly configured in Odoo.

Only at the deadline, July 1, 2020, we activate the automatic recognition of the tax allocation so that the new tax rates are applied by default. At the end of the period, December 31, 2020, we deactivate the automatic recognition of the tax allocation again in order to return to the usual tax rates.

Before and after the relevant period, the new tax assignment can also be selected manually, for example, to be able to create invoices for this period correctly in advance or afterwards. The automatic tax assignment works fully integrated in the entire Odoo system and is also applied in purchase orders, sales orders and in the online store, among other things.

Do you have questions about the detailed configuration for the upcoming tax reduction in your Odoo entity? Contact us now and we will be happy to carry out the configuration together with you!


Sources: www.bundesregierung.de, www.handelsblatt.com, www.odoo.com

 
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